On The Influential Factors Of Household Financial Portfolio Choice In China

With the rapid development of the socio-economic level after the Chinese Economic Reform, the income level of households is increasing as well as their needs for financial assets. At the same time, the financial markets are well developed than before and households have easier access to different kinds of financial instruments to achieve wealth appreciation. The behaviors of household financial assets allocation are becoming more and more complex, which means the scale and structure of household financial assets have been improved. However, under the storm of the global financial tsunami, the stock market vibrated substantially and the continuous recession made households'wealth shrink severely. Therefore, how to guide reasonable investment in financial assets and to create a rational investment climate will play an important role in maintaining stable economic growth in China.This paper will do both theoretical analysis and statistical analysis. Firstly, the paper reviews former foreign and domestic research on household portfolios. Secondly, based on the theory of consumption and saving and modern portfolio theory, the paper explores the mechanism of those crucial factors which influence portfolio choice and the relationship between them theoretically. Thirdly, by comparing the scale and structure of household portfolios in China, we summarize the characteristics of downtown and rural household portfolio choices from the database of Chinese household investment behaviors and feelings. Meanwhile, we wish to provide some thinking for the development of property income and Chinese household investment by analyzing the household portfolios status and characteristics of financial assets in the USA. Finally, the paper makes a conclusion of the whole content and brings forth some thinking such as risk education for investors, the improvement and innovation of capital market and supervision of government.