Research On The Impact Of Credit Constraints On Household Asset Allocation In China

The National Bureau of Statistics reports that China’s per capita disposable income will grow by 8.1% in real terms in 2021,faster than economic growth.The level of disposable income of households has gradually increased,and the size of household assets has also expanded.A reasonable household asset allocation structure is conducive to reducing systemic risks,narrowing the gap between the rich and the poor in society,optimising the allocation of social resources and allowing the real economy to operate more stably,and how to make a reasonable and effective asset allocation has become a key concern for the social economy.At the same time,along with the continuous increase in the level of household wealth and the development of living standards in China,the scale of household indebtedness has also expanded,and the proliferation of various forms of loans has greatly changed the consumption and saving habits of residents and affected the asset allocation of households.Therefore,the impact of household credit status on asset allocation cannot be ignored.This paper will explore the impact of credit constraints on the asset allocation of Chinese households.This paper first summarizes the relevant literature and theories,followed by analyzing the relationship between credit constraints and household assets and proposing research hypotheses,followed by statistical analysis of the development of China’s credit market and the characteristics of households’ asset structure as well as the situation of being subject to credit constraints,based on which micro data from the China Family Panel Studies(CFPS)2018 are used to develop a Probit model and Tobit model,empirical tests were conducted on households’ participation in various types of assets and the proportion of various types of assets,respectively,to demonstrate the relationship between credit constraints and household asset allocation,followed by heterogeneity analysis based on urban-rural differences and regional differences,and the following conclusions were drawn:(1)The asset structure of Chinese households is dominated by real assets,of which the largest proportion is property,and financial assets are dominated by savings,with a The participation in risky assets is low,and the proportion of households subject to credit constraint is nearly 34%;(2)Credit constraint has a significant negative impact on households’ current housing,other housing,cash deposits and financial products,and a significant positive impact on business assets and lending money.Households subject to credit constraints significantly reduce the probability of holding and the proportion of holding households’ current housing,other housing,cash deposits,and financial products,while increasing the probability of holding and the proportion of holding business assets and lending money,indicating that credit constraints are not the cause of China’s high household savings rate,and that credit constraints can seriously hinder households’ participation in the property and financial markets;(3)The impact of credit constraints on household asset allocation impact,there are significant urban-rural and regional differences.Finally,based on the findings of the study,the following policy recommendations are proposed:(1)Optimize household asset structure and weaken the importance of property for household asset structure;(2)Promote financial innovation,strengthen market supervision,and build a good credit market and financial market environment;(3)Maintain stable prices,enhance employment,and raise the disposable income level of households;(4)Enrich residents’ financial management knowledge and improve their financial literacy;(5)Focus on financial popularization in disadvantaged areas and narrow regional differences.