Resident Portfolio Behavior Under Uncertainty

Since reforming and opening up, with rapid economic growth of China and the planned economic transition to a market economy, China's economy and society have changed dramatically, and the income level of residents also has greatly increased, accumulating a huge amount of personal wealth. However, the choice of Chinese resident's assets is uncertainty due to economic factors, market factors and institutional factors and it reflected in the uncertain income of residents, the uncertainty of investment and capital market uncertainty and so on. As the uncertainty increasingly prominent, their risk preferences and select assets of the research become key areas in the financial research over the past 20 year, and the financial fruits of their research have an important theoretical and practical significance of product development, management of financial institutions, macroeconomic financial policy.First, the existing paper based on the theory of the residents of China's choice of assets, we analyze China's residents' assets choice behavior changes in the structure of the trend, and try to find out the reasons for this trend. Secondly, the paper on income and residents of the total financial assets, interest rates and financial assets choice of the empirical analysis, the level of income of Chinese residents is the main reason for the total financial assets and the nominal interest rate is the major consideration for the choose of residents' financial assets. Again, surveying the financial assets choice of 12 city residents, the main aim is to discover the savings motivated residents and residents investment risk preferences, as well as the impact of micro-level factors, and use behavioral finance theory for analysis. Finally, this article on China's urban and rural areas, between regions residents' assets choice behavior differences were analyzed, and the international comparisons. Based on the above analysis, this final optimization of China's residents puts forward reasonable proposals choice assets, thus improving our country's savings—consumption relations, and optimize capital assets of China's social structure, and improve our financial macro-control policies. This paper is divided into seven chapters:The first chapter, introducing the topics' background, significance, theses, technical implementation of the programmers and technical line, as well as innovation and inadequate.The second chapter, literature review. First consumption of the traditional classic - savings assets choice theory and the theory of the order, followed by the study of the status at home and abroad, and explains, concluded assets choice of the residents support the theory and research ideas. This paper will be linked to China's national conditions and follow the theoretical study of asset selection path of China's residents' asset selection factors and the impact of asset choice of the residents of the issue in-depth analysis, this paper constitutes a part of the theoretical foundation.The third chapters, on the impact of China's residents were physical assets and financial assets choices of the factors were analyzed. Pointed out that interest rates, risks and uncertainties, liquidity constraints and time preferences and the capital market are the degrees of perfection of the financial assets of residents of the important factors choice; income levels, inflation expectations, the system is bound residents of China physical assets choice important factors . In fact, because of regional differences in political, economic, cultural, and other aspects those significant differences, which would affect the behavior of residents' asset selection factors. In addition, individual investors' age, gender, level of knowledge, the work, own property of the residents and other factors will have an impact on asset choice behavior, because of space constraints, not in this paper elaborated.The forth chapter, statistical data on the calendar year basis, focusing on Chinese residents assets choice behavior of the structure and characteristics of a change in trend analysis. This paper Zhang Xueyi (1999) "China's financial assets Table Design and the total measured" approach recommended by the residents of China's total financial assets carried out calculations, the main financial assets choose cash, savings deposits, stocks, bonds, insurance, mutual funds and other analysis; physical assets mainly in the residential market as an example of China's domestic market prices steadily higher reasons. Finally SPSS12.0 and Eviews3.1 income and residents were on the total financial assets, interest rates and financial assets choice of the empirical analysis.The fifth chapter, the current residents of physical assets is the main purpose of consumption, rather than investment, we use this chapter to the questionnaire from the micro perspective of individual investors on China's financial assets choice behavior was analyzed. Investigations revealed that China's individual investors in the asset choice is generally risk aversion, but in the choice of the portfolio of financial assets does not exist obvious risk aversion of this point and the more developed countries of the assets of individual investors have a significant choice differences. At the same time, this paper, behavioral finance theory of Shanghai and Shenzhen stock markets of non-rational prosperity and depression were analyzed.The sixth chapters, the paper from urban and rural areas, regional and international point of view of three Chinese residents' asset selection conduct a comparative analysis. Found our urban and rural areas, between regions residents choose very different assets, also found that with the United States, Japan and other developed capitalist countries are still far from the assets of choice, and yet to be further improved.The seventh chapter, based on the above analysis, the policy recommendations in four areas: deepen the reform of the economic system and reduce the uncertainty of the residents' expectations; speed up the financial system innovation, and promote diversification of financial assets of residents and speed up the reform of the financial system in rural areas, improve rural areas financial markets; inhibit real estate investment demand, and promote the healthy and stable development of the house market.