The Impact Of Household Financial Assets On Household Consumption

Over the past 40 years of reform and opening up,China’s economy has maintained rapid growth,but the consumption level is seriously disconnected from the GDP growth rate,and the household savings rate remains high.At present,in the troika of economic development,the model of investment-driven economic growth has gradually become weak,and exports are also facing a high degree of uncertainty due to the complex international environment,so it is imperative to release domestic demand,achieve consumption upgrading,and form a new development pattern in which the domestic cycle is the main body and the domestic and international dual cycles promote each other.Based on the analysis of income theory and wealth effect,it shows that households invest in financial assets to improve the level of household income,as well as to achieve the appreciation of the book value of household assets and increase the expectation of future income,which will help improve household consumption,and the future boost of China’s household financial assets to consumption will gradually become prominent with the improvement of China’s financial market.Therefore,studying the impact of household financial assets on household consumption not only has certain practical significance,but also can provide suggestions for better realizing the dual-cycle development strategy at home and abroad.This paper uses the CHFS data in 2017 to study the relationship between the change of household financial asset allocation ratio and household consumption.Firstly,the relevant theoretical basis is used to determine the research framework and research hypothesis,so as to construct an empirical model,and then the corresponding research hypothesis is tested.The results of the study show that the growth of the stock value of household financial assets or the investment income of financial assets can significantly promote the growth of total household consumption expenditure,mainly basic consumption and enjoyment consumption.With the increase of temporary fluctuations in total household income,temporary fluctuations are negatively correlated with total household consumption,basic consumption,development consumption and enjoyment consumption.The increase in the proportion of risk assets can significantly promote the growth of total household consumption expenditure,mainly enjoying consumption,and all of them show an inverted U-shaped relationship,but the increase in the proportion of risk-free assets has no significant impact on household consumption expenditure.The increase in the proportion of stock assets can significantly promote the growth of total household consumption expenditure,and show an inverted U-shaped relationship,and the increase in the proportion of fund assets can significantly promote the growth of total household consumption expenditure,mainly to enjoy consumption and development consumption,and show an inverted U-shaped relationship.Secondly,the promotion effect of the proportion of risk asset allocation in small and medium-sized households on household consumption is greater than that of large-scale families;with the growth of age,the impact of the increase of the proportion of risk asset allocation of households on household consumption expenditure is gradually enhanced;the increase in the proportion of risk asset allocation in households with good health is greater than that of families with poor health;the increase in the proportion of household risk asset allocation in the eastern,central and western regions can promote household consumption expenditure.However,households in the central and western regions mainly enjoy consumption and development consumption;the increase in the proportion of risk asset allocation in urban households can better promote household consumption,and rural households are mainly basic consumption.Finally,based on the above conclusions,the corresponding policy suggestions are put forward.