Research On The Financial Risky Asset Selection By Chinese Household

At present,the main characteristic of household asset structure in our country is that the proportion of the real estate and the deposits in the household portfolio is high,but the proportion of the risky financial asset,for example,the equity is low.While under the background of economic transition,should lead the household increasing the weight of the risky financial asset in the household portfolio? If it does,what factors will impact the investment decision of the household for the risky financial asset? By making the relative policy we may lead the household participate in the capital market actively,and make the household increase the weight of the risky financial asset.In response to the above two questions,this paper made specific and detailed discussion,and came to the conclusions as follows: Firstly,the household sector should be lead to improve the weight of the risky financial asset in the critical period of the economic transition,and it may improve the capital supply side the market,promote the prosperity and development of the capital market and the realization of the goal about the economic transformation.Secondly,by examining the behavior of the household asset selection,this paper find the reason about the characteristic of our household portfolio is that the risk-benefit ratio of equity is lower than that of real estate,which give rise to the long-run demand elasticity for the equity lower than for the real estate.Besides,from the family-micro point of view,the wealth,age,house ownership and risk preference of the residents will affect the risky financial asset selection of the household.Therefore,policy market can lead the household participate the capital market actively by making relative policies,contributing to improve the financial efficiency in the economic transition period.To be specific,the contents and conclusions of the main part of this paper are as follows:Chapter 3 examine the relationship between the industrial upgrading and the household asset selection.Firstly,from the theoretical and empirical perspective it make research on the relations between the industry structure and optimal financial structure,and the interaction between household asset selection and financial system development,respectively.It conclude that the investment behavior of the household for risky financial asset will make an important in our industry upgrading.Secondly,By comparing to the developed country in the similar economic development period,we find that the weight of the risky financial asset is exactly low in our household portfolio.Hence,based the two point above,we prove the importance of leading household to improve the weight of the risky financial asset under the background of industry upgrading at present.In Chapter 4 this paper account for the reason of the low weight of risky financial asset in Chinese household portfolio by comparing the risk-benefit features of different types of broad asset.Then it further investigate the household demand for different kinds of broad asset.It shows that the demand for real estate is higher than that for equity in long-run horizon,and the demand elasticity for real estate is also higer.Moreover,real estate is necessity good for household sector,but equity is a luxury good,which further explain why the weight of real estate is high,and that of equity is low in household portfolio.In Chapter 5 it explore the impact factors of the investment decision for risky financial asset by household from the family-micro point of view.In light of the features of our household sector,this chapter mainly discuss the impact of wealth,age and house ownership of residents on risky investment decision by household.It turned out that the more wealthy of the residents,the more willingness for residents to participate in risky financial investment;the impact of age on investment willingness of residents shows a “hump-shape”;and owing the house will “crowed out” the risky financial investment by household.In addition,compared to the young household,the older household investor is more inclined to invest the risky financial asset with the additional wealth,and it is also found in the household owing the house compared to the household without the house ownership.The conclusions help explain the “limit participation in the capital market” puzzle.This paper also examine the impact of resident risk preference on household portfolio in Chapter 6.Firstly,it show that the impact of wealth and age on risky investment decision is the influence of risk preference actually.Secondly,the empirical results demonstrate that the risk preference has a significant positive effect on the risky and diversification of household asset structure,and the latter one is due to the concentrated allocation for riskless asset portfolio by lower risky preference residents.Moreover,low risk preference residents who are in the lower income and worse health are more inclined to hold risk free portfolioThis paper also have innovation points as follows:(1)Combining the theoretical and empirical method,this paper firstly examine the relationship between the houseld asset selection for risky financial asset and industry upgrading.So the research respective is relative new,and it contribute to deepen the understanding the relation of the issues across the levers.(2)As for the empirical method application,this paper firstly apply the AIDS mode which presented by Deaton & Muellbauer(1980)to examine the Chinese household asset selection,and explain the characteristics of the our household asset selection from the perspective of substitution effect among the broad assets.(3)For the selection for the research data,as a member of the research group of Major Program of National Social Science Foundation of China,the author joined the household survey activity during July 2015 to August 2015 that organized by research group,and the survey areas covered ShangHai,Beijing and other 10 provinces and municipalities.By demonstrating the design of the content of the questionnaires,diligence investigation,and strictly data input,we obtain 940 effctive questionnaires that may reflect the asset structure of the household.Compared to the data used in the pervious research,this data is more timely,and it can offer more detail information about household asset structure.Hence,based on the first-hand data obtained by this activity,the author examine the impact of the houshehold risk preference on the household portfolio selection,and get the robust empirical results.