The Interaction Of Real Estate Assets And Financial Assets In Family Asset Allocation

In recent years, as the real estate market developing rapidly, and the financial assetinvestment increasing, it is the family asset allocation that has drawn more and moreattention from us. In this paper, the issue is the problem of real estate assets and financialassets, and find out the key elements interacting through empirical study and get therelationship between them.At first, it has defined the research scope of household assets, and classified thefamily assets into physical assets and financial assets. And residence represents forphysical assets, as stocks and bonds represents for financial assets. On analysis of thedata of family assets, we find out that the amount of family assets is increasing, and theproportion of financial assets is less, while the proportion of real estate assets is larger.The portfolio is affected endogenous variable such as residents’ preferences andexogenous variables such as economic environment, policy and others.Secondly, it has introduced the policy changes which has influence of real estateasset allocation, then analyzed the present situation of real estate assets in residents.Although the demand for real estate assets in China remains strong, residents have moredifficulties in investing property assets, as the result of tightening policies in real estatemarket. So much more fund will come into financial market recentlyThen, on the basis of the research achievements from domestic and foreign scholarsit has find out the main factors which affect proportion of bond, the proportion of stock,the consumption and the housing area of our residents.Finally, in the empirical model, we have drawn the conclusions through the grangertest and multiple regression:(1) in our country, real estate assets have more impact on thetotal assets of residents while total assets have little impact on real estate assets.(2) In theasset allocation in the family，real estate assets affect the configuration of financial assets,but financial assets configuration does not affect the real estate assets.(3) As arepresentative of the financial assets, the proportion of stock is inversely proportionalwith the per capita housing area, but directly proportional with sales price of house.(4)Consumption, income and the asset price, will all affect the configuration of each asset.