China's Household Savings Behavior And Residents' Savings Deposits Scale Study

The fast growth of the household saving deposit has been the focus of a lot of experts recently. To some extent, the growth of the saving deposit is the result of development of economy and the stability of the politics .However, when the saving deposit has departed from the normal trace, it is improper for the experts to use the traditional economic theory to explain the phenomenon. Indeed, more and more experts have pointed out that the growth of the household saving deposit is not only the economic problems, but also social problems which are caused by the reformation of the social system. Therefore, we must cope with the saving deposit problems by analyzing some social factors which affect the saving deposit. It is also the main responsibility of this paper.Generally speaking, some experts analyze the problem of the saving only by researching the saving behavior of the household. Indeed, studying the saving deposit is not only by researching the household' behavior, but also by explain why the household choose to save their fund in the bank, not invest their fund by other approaches. That is to say ,we will study the overgrowth of the household saving by two sides, including why the household choose to save their fund and why to save their fund in bank rather than to hold by stock, bond or mutual fund.Firstly, the paper makes use of the O-G model using data from China to study household saving ,and analyze factors which affect the household behaviors. In addition, the paper uses VAR model and cointergration analysis method to explain the household's behaviors.Secondly, to study why the household save their fund in bank rather than invest other ways, The paper studies the quality of the household behaviors, and the cause of the household select the bank as their way of holding the asset.In the end, I will make a summary and draw a conclusion.