The Study On The Structure Of Household Finance Assets In China

Since reform and opening-up, the economy continues to develop, and people's income levels increase significantly, from the per capita household income of only 230 Yuan at the beginning of reform and opening-up, to the current per capita household income increased by 40 times. When people's income increases persistently, their financial awareness are also increasing, thousands of families are no longer limited by a single hedge-type financial assets, such as interest-bearing savings deposits to earn money, more and more families turned to pay attention to capital markets products, begun to focus on choice of diversification of financial assets, and pursuit not only safety, but also liquidity and profitability. With the increase in household income and demand for financial assets, many scholars and financial institutions, financial sector began to give attention to household finance research. Research in the field of domestic finance is sooner than the research in foreign countries. Although the study abroad is earlier, the U.S. economist Campbell raised household finance as an independent field at the annual economic meeting, which was first proposed.The study and analysis on the structure of household financial assets are of highly theoretical and practical significance. From the family itself, the reasonable structure of household financial assets make household benefit through the financial assets to achieve the goal of increasing family income levels, further, improve quality of life and increase the level of family welfare, but also help families to meet their need for children's education, major diseases, prevention motivation. From the perspective of financial institutions, the optimization of structure of household financial assets can speed up the process of financial innovation, improve the awareness of financial services, focus on customers, to develop more financial products, which cater to market demands and improve financial institutions to their competitiveness and profitability. Last but not least, from a macroeconomic level, an increase in the size of household financial assets and an optimization of structure can promote economic growth, particularly in the finance development, through impact on relevant variables. Besides, the optimization of household financial assets can increase people's income, which can play a role in the promotion of social stability to a certain extent. Therefore, it is essential and significant to study the structure of household financial assets.This paper aims to analyze the structure of household financial assets, and find the factors that affect the composition of household financial asset, and in order to put forward policy recommendations. In a specific study, this paper uses time—series models, by examining the stationarity and co-integration test to establish the vector error correction model, which aims to analyze the relationship between variables.This paper use the empirical results to predict the formation of household financial assets, and compare the predictive results with the actual results, we can draw a conclusion that the result is ideal. On the basis of the empirical results, this paper puts forward policy recommendations to optimize the structure of household financial assets from five major aspects, including the construction of the financial system, financial innovation, capital market and insurance market construction, private banking business development, and the education and popularization of financial knowledge.