The Financial Strategy Research Of Chinese Families Hedge Against Inflation

In recent years, China’s CPI is rising as the price of food and housing increased.This phenomenon means inflation has appeared in Chinese economy. The rapid risein price of daily necessities has significantly exceeded the increase of household’sincome. In other words, the purchasing power of residents’ disposable income isgradually declined. Such conflict not only manifests an urgent need of familiesfinancing strategy, which is based on the financial planning, but also affects people’slife in many respects. In this situation, a rational planning of “family finance” seemsvery important. After thirty years reform and opening-up in Chinese financial market,China has become the world’s second largest economy, which can offer manycomprehensive financial investment instruments. By means of savings, commercialinsurance, endowment insurance, real-estate, stocks and funds, gold investments,families could maintain or even increase their assets’ value.In the context of inflation, under the situation of medical treatment, houseproperty, children’s education and aged security need to be arranged in advance, howto use effective family-financial strategy avoiding the risk of inflation, and how tomaintain and increase our wealth by investment and wealth management, is apractical problem in family’s wealth management which is urgent to be thinkingabout. The development of family’s investment and finance need to be scientific andrational planned and establish a correct way of financing, moreover, it need financialinstitutions to offer more financial products, perfect the investment environment,optimize the allocation of family’s investment funds, improve the investment returns.Only in these ways can families maximize their funds efficiency.This paper is mainly focus on how the Chinese families achieve their financialgoals by using financial instruments, such as savings, loans, investments andinsurance. Though the research in Chinese family’s financial situation, we can findout that our family’s finance have some problems, such as high proportion in savings,full enthusiasm in real-estate investment, lacking of long-term financial planning, education and medicare problems. This paper firstly introduces the feature of manyfinancial instruments, such as bonds, bank deposit, stocks, funds, real-estate, futures,artwork investment, etc. Secondly, according to different financial goals in manyphases, it designs different portfolio managements which are fully consideredpeople’s real investment capability, risk-bearing capability, financial ability, etc.,then make a complete financial planning. Finally, according to a detailed caseplanning, it presents a whole process of family finance. In terms of different phasesof life planning, it designs the financial goals and investment ways in every phase.Comprehensively considered the financial analyzing data of Chinese families, itmakes financial goal and investment projects, and amends them periodically.