An Empirical Study On The Determination Of Household Portfolio Selection In China

With the rapid development of the national economy, The household wealth hasreached a rapid accumulation, and the household financial assets have increaseddramatically. With the deepening of the financial markets’ reform and improvement,types of household financial assets are growing, the structure household financial assetsis diversifying, the household financial asset selection behavior become more and morecomplicated. The selection of household financial assets in China has become the focalpoint on the theorists and even the whole society.This paper analyzes the overview and Influencing factors of the household financialassets selection behavior in China. Using Eviews5.0metrology software, This paperanalyzes the relationship of the household financial assets selection behavior andInfluencing factors from1978to2009by Cointegration Analysis, Granger test and ErrorCorrection Analysis. The results show that there is a long-term cointegrationrelationship between the household financial assets selection behavior and influencingfactors, and the Granger causality tests are mostly one-way. The total amount andstructure of household financial assets in China have a negative change by their ownshort-term fluctuations (except for the proportion of stock holdings) and a positivechange by the development of financial markets. The total amount of household financialassets and the proportion of stock holdings have a positive change by economic growth,while the proportion of savings and bonds are negative.