Research On The Impact Of Digital Financial Literacy On Household Financial Asset Allocatio

The report of the 20 th Party Congress proposed to "increase the property income of urban and rural residents through multiple channels",and a reasonable allocation of household financial assets is an important way to realise this requirement.Studies have shown that improving residents’ financial literacy can promote a more reasonable allocation of household financial assets,but the arrival of the current digital wave is profoundly changing all areas of the economy and society,and the improvement of financial literacy can no longer meet the requirements of the digital era,so efforts should be made to improve residents’ digital financial literacy.Digital financial literacy is a new dimension and a new area of financial literacy in the digital era.Against the background of the increasing digitisation of financial services,improving consumers’ digital financial literacy is conducive to narrowing the digital divide,reducing financial exclusion and enabling the people to enjoy the digital dividend more fully.Based on combing through relevant studies and theories,this paper defines core concepts and uses Arc GIS10.8 to analyse the spatio-temporal evolution of China’s residents’ digital financial literacy levels based on data from the 2015,2017 and 2019 China Household Financial Survey(CHFS),followed by a cluster analysis using SPSS to explore the current household financial asset allocation types.In the empirical part,the Probit model,Tobit model and Zero Inflation Negative Binomial(ZINB)model are used to investigate the impact of the digital financial literacy of household heads on household financial asset allocation decisions,allocation depth and allocation diversity,while geographical and asset class heterogeneity analysis is conducted.Endogeneity and robustness tests are conducted on the empirical findings.Based on the above analysis,the following conclusions are drawn: First,in terms of the overall level of digital financial literacy in China.Firstly,in terms of the overall level of digital financial literacy in China,the overall level of digital financial literacy of Chinese residents is low and varies greatly among individuals.Secondly,in terms of China’s household asset allocation status.The reasonableness and scientific nature of the asset allocation of Chinese residents’ households need to be improved.Third,the impact of digital financial literacy on household asset allocation.Both digital financial literacy and its sub-dimensions can effectively contribute to the allocation decision,allocation depth and allocation diversity of households’ risky financial assets,and the impact of behavioural literacy is greater.Fourth,in terms of geographical heterogeneity and asset class heterogeneity.The impact of the level of digital financial literacy of household heads is greater in the east than in the central and western regions,and in towns than in rural areas,but the marginal effect of behavioural literacy is greater in rural areas than in towns;the analysis of asset class heterogeneity reveals that the impact of the level of digital financial literacy of household heads on risky financial assets in household financial asset allocation is greater than that of risk-free financial assets,and from the breakdown of risky financial assets,the impact of digital financial literacy on them In terms of the breakdown of risky financial assets,the impact of digital financial literacy on them is ranked from largest to smallest:financial products > stocks > funds > bonds.Fifth,in terms of intermediation mechanisms.Digital financial literacy influences households’ allocation of risky financial assets through social interactions,access to information and risk preferences.Finally,the countermeasures and suggestions are put forward.