The Influence Of Digital Finance On The Investment Of Urban Household Risky Financial Assets

In recent years,with the rapid growth of China’s economy and the accumulation of family wealth,the financial investment needs of urban families has become increasingly strong.Rational investment in risky financial assets plays an important role in improving the property income of urban families and realizing the maintenance and appreciation of urban family wealth.However,due to the lack of financial supply and the lack of financial knowledge of urban households,the number of urban households investing in risky financial assets in China is still relatively low.Digital finance,supported by digital technology,has already become a new direction of financial development in our country.And it’s important for the China’s construction of modern financial system.The rapid development of digital finance has effectively made up for the deficiency of traditional financial services,improved urban households’ understanding of investment and finance,and effectively helped urban households invest in risky financial assets.Therefore,studying the influence of digital finance on the investment of risky financial assets of urban households has great practical significance for the development of new financial service modes and the realization of urban household finance goals.Based on this,this paper provides an in-depth study of the impact of digital finance on the investment in risky financial assets of urban households.First of all,starting from defining core concepts and elaborating main basic theories,this paper thoroughly combs and analyzes the mechanism and heterogeneity of digital finance affecting urban household risky financial asset investment,and then puts forward the research hypothesis of this paper.Secondly,Analysis of the current situation found that digital finance develops rapidly and is in a state of steady growth,the growth rate has slowed down in recent years.The investment of urban family risk financial assets has the "finiteness",the number of urban family investment is less,and the proportion of risk financial assets investment is lower.Thirdly,using Peking University Digital Financial Inclusion Index and China Household Finance Survey data(CHFS),this paper construct the Probit model and Tobit mode to analyze the impact of digital finance on the investment of urban household risky financial assets.At the same time,the endogeneity test is carried out by instrumental variable method and the robustness test is conducted by replacing explanatory variables and excluding the samples with financial practitioners.On this basis,the influence mechanism was tested and analyzed.Moreover,the heterogeneity analysis is carried out in terms of income and education level by means of sub-sampling.The empirical results are as follows:Digital finance can significantly promote urban households to invest in risky financial assets,increasing the probability and proportion of urban households investing in risky financial assets;Through mechanism analysis,it is concluded that digital finance promotes urban households to invest in risky financial assets by increasing the availability of finance and improving the level of family financial knowledge;Heterogeneity analysis shows that digital finance has a stronger promotion effect on risky financial asset investment of urban households with high income and high education level.Finally,based on the research findings,this paper proposes relevant countermeasures from the perspectives of improving the digital financial products and services system,increasing the number of years of education and financial literacy of households,further raising the income level of households and increasing the supervision of digital finance.