| One of the core goals of China’s modernization drive is to make the benefits of economic development equally shared by all.The goal of "expanding the middle and lifting the low" is to improve the living conditions of low-income groups,accelerate the development of middle-income groups,eliminate the gap between the rich and the poor,and establish an "olive" balanced income distribution structure.As an important human capital.Financial literacy is one of the important parts of human capital,which affects the breadth and depth of Chinese residents’ family financial market participation.Through the statistical analysis of the 2019 China Household Finance Survey,it can be clearly seen that there is an obvious imbalance in the income structure of China’s middle-income groups,among which wage income accounts for a relatively large proportion,while property income is relatively small.In this context,it is of practical significance to explore the financial literacy of middle-income groups for the allocation of family financial assets.On the one hand,the description and analysis of different characteristics of middle-income groups can provide references for the improvement of the financial literacy level of middle-income groups.On the other hand,according to the empirical results,targeted suggestions can be put forward for the allocation of family financial assets of middle-income groups,so as to improve their participation in the family financial market,optimize the asset structure,increase their property income,and improve the development quality and level of middle-income groups.At the same time,it can speed up the idle capital flow of middle-income groups and release the urgent demand for investment.In this study,the survey data of China Household Finance Survey(CHFS)in 2019 were mainly adopted.Samples were screened and cleaned according to the definition of middle-income group by the National Bureau of Statistics,and valid samples of middle-income group were retained.Household financial asset allocation is the explained variable and financial literacy is the core explanatory variable.In the empirical part,the Probit and Tobit models are constructed to analyze the participation of middle-income families in the financial market and the proportion of risky financial assets.Risk attitude was used as a mediator variable to test the mediation mechanism.Then,the robustness of the empirical results was tested by analyzing the endogeneity,replacing the measure of financial literacy of the core variable and replacing the data samples of middle-income groups.Finally,the heterogeneity of this study is analyzed by stratification of education level and age.The research shows that:(1)the financial literacy level of the middle-income group is still relatively low.After measuring financial literacy,the average financial literacy of middle-income groups is 0.351;According to the results of the answers to the three questions related to financial literacy,the middle-income group’s familiarity with and mastery of financial knowledge is not high enough.(2)In terms of risk attitude,the overall cumulative proportion of risk preference of middle-income groups is only 9.93%,less than 1/10 of the statistical total,and more than half of them are risk avoiders.Bank savings is still the main way for middle-income households to allocate financial assets.The accumulated deposit balance accounts for 46.6%,while stocks,funds,bonds and financial products account for a relatively small proportion.Middle-income households tend to prefer financial assets with lower risks and more conservative returns in their overall financial investment.(3)Financial literacy promotes middle-income families to participate in the financial market.Specifically,the probability of participating in the financial market increases by 46.9% when the financial literacy of middle-income groups increases by 1 unit.(4)Financial literacy can increase the proportion of risky financial assets of middle-income families.The specific performance is as follows: when the financial literacy of middle-income groups increases by 1 unit,the proportion of financial risk assets of middle-income families increases by 19.8%.(5)Risk attitude plays a partial mediating role in the influence of financial literacy on family financial asset allocation of middle-income groups.Financial literacy can improve the risk preference of middle-income groups and promote financial market participation,and the intermediary effect accounts for 20.7% of the total effect.At the same time,financial literacy can also improve the risk preference of middle-income groups,and thus indirectly promote the proportion of middle-income households holding risky financial assets,with the intermediary effect accounting for 24.3% of the total effect.(6)The impact of financial literacy on household asset allocation of middle-income groups is heterogeneous.Specifically,on the one hand,young people are more likely to participate in the financial market than middle-aged and old people,but middle-aged and old people are more likely to hold risky financial assets than young people.On the other hand,financial literacy plays a greater role in promoting the participation of middle-income groups with higher education in financial markets and the proportion of risky financial assets of middle-income groups without higher education.To this end,this article puts forward the following suggestions:(1)For the government,their own financial services and levels should be improved;Secondly,we must improve legislative construction and strengthen financial supervision;Finally,we must focus on expanding the scale and level of the middle-income group.(2)For financial institutions,we must compact their subject responsibilities and actively spread relevant financial knowledge and risk information to consumers;Secondly,strengthening the level of fintech.Targeting financial products that meet different risks,provide investors with a variety of choices,and increase investors’ willingness to invest.(3)For investment families,investors should take the initiative to improve their financial literacy.On the basis of in-depth understanding of their own financial conditions,investment experience and risk tolerance,investors should carefully choose the most suitable investment and wealth management plan to obtain the maximum benefits. |
