National Attributes Of Household Heads And Stock Market Participation In China

The report of the 20 th National Congress of the Communist Party of China clearly indicated that it is necessary to improve people’s livelihood and well-being,improve the quality of people’s lives,and broaden the channels of residents’ property income.The stock market is an important channel for obtaining property income.If residents do not participate in the stock market,they will not only lose a diversified asset allocation for families but also lose an important way to increase property income through equity income.China is a multinational country under the unified leadership of the Communist Party of China.So we have a unique advantage to study the impact of the national attributes of household heads on the participation of the stock market.Xi Jinping,General Secretary of the CPC Central Committee,proposed at the Central Working Conference about Nationality Affairs that it is an important principle of national work to promote the innovative development of national work,correctly grasp the relationship between commonality and difference,enhance commonality,and respect and tolerate differences.This paper will study the limited participation of the household stock market from the perspective of the national attributes of household heads,which can not only provide a new research perspective for solving the mystery of "limited participation in the stock market",but also enrich the theoretical research of "cultural background affects the participation of the stock market".It can also respond to the initiative of the 20 th National Congress of the Communist Party of China to broaden the channels of residents’ property income,improve people’s livelihood and improve the quality of people’s lives,consolidate the achievements of poverty alleviation,and promote common prosperity;It is also conducive to promoting the cultivation of a strong sense of national community and realizing the great rejuvenation of the Chinese nation.This paper uses the data of the 2019 China Household Finance Survey of the China Household Finance Survey Center of Southwestern University of Finance and Economics to study the influence of national attributes of household heads on stock market participation by using Probit and Tobit models.When the national attributes of household heads are simply divided into "Han" and "minorities",the national attribute of the head of the household is " minorities" compared to "Han ",households are less likely to own stock accounts and experience stock trading,and the proportion of equity assets they own is lower.When the national attributes of household heads are divided into "Han","Hui","Zhuang","Manchu" and "other minorities",the national attribute of the head of the household is "Hui" compared to "Han",households are less likely to own stock accounts and stock trading experiences,and the proportion of stock assets held is lower,but the significance of the influence of the national attributes of the head of the household on the participation of stock market has decreased.Compared with the household head whose national attribute is "Han",the household head whose national attribute is "Zhuang" is less likely to have stock trading experience and a lower proportion of stock assets.and only significant at a 10% confidence level;Compared with the national attribute of the head of the household,there is no difference in the stock’s participation market with the national attribute of "Manchu".Compared with households with the national attribute of "Han",the household head whose national attribute is " other minorities " is less likely to have stock trading experience,stock trading experience and a lower proportion of stock assets.There is no difference in household stock market participation when the national attributes of the head of the household are "Hui","Zhuang","Manchu" and "other minorities".The robustness test was performed after replacing the model,changing the explanatory variables,removing the extreme value sample family,using the data of the2013 CHFS,and the conclusions remained consistent.The heterogeneity analysis showed that the influence of the national attributes of young heads of households and families with more than one child on participation in the stock market was no longer significant.Further analysis of the influence mechanism showed that the national attribute of the head of the household is " minorities",households have a stronger risk appetite,so risk appetite cannot explain the impact of the national attributes of household heads on stock market participation;However,the social interaction and regional differences of households can partly explain it;In particular,regional differences affect the participation of the national attributes of the head of the household on the stock market participation through financial availability,household wealth level,education level of the head of the household,and financial literacy of the head of the household.In the extended study,it was found that the household having a stock account but not participating in the stock market had nothing to do with the national attributes of the head of the household,but only with the age of the head of the household,the financial literacy of the head of the household and the net worth of the family.The absence of significant differences in the participation of households in the stock market of households with national attributes of "Hui","Zhuang","Manchu" and "other minorities" can be explained by the fact that there are no significant regional differences between households of "Hui","Zhuang","Manchu" and "other minorities".Finally,according to the research conclusions,corresponding countermeasures and suggestions are given from three aspects: individuals,financial institutions and the government.