The Influence Of Financial Knowledge And Investment Experience On Household Financial Market Participation And Assets Allocation In China

Since reform and opening up, both the total amount and structure of the household financial assets have changed a lot, but there are still some problems, such as the insufficiency of the total quantity, and the allocation of social resources is not reasonable. Therefore, the study of the allocation of the household financial assets have a great significance to the country to formulate corresponding policies, helps to guide the household funds take the reasonable way, optimize the allocation of resources, improve residents’wealth, promote the sustainable development of the financial market and the real economy.In this paper, we mainly study the influence of the financial knowledge and investment experience to household financial market participation and assets allocation in China. Firstly, we summarize the related theories of the allocation of household financial assets. According to the influence factors of the allocation of household financial assets, we introduce the classified literatures both our country and abroad. Then, we analysis the features of the total amount and structure of the household’s financial assets in recent years in China and give the summary. Then, based on the survey data of CHFS, we analysis the population characteristics and the allocation of financial assets.Then, we carry on the empirical analysis in this paper. We mainly examine the influence of financial knowledge and investment experience to household financial market participation and financial assets portfolio.The empirical research shows that:financial knowledge have significant positive influence to the household financial market participation and stock market participation and household risk assets ratio. However, there is no significant correlation between financial knowledge and household stock assets ratio. Investment experience has significant positive effects on household stock assets ratio. The cause of the difference is that the financial knowledge cannot significantly increase the likelihood of stock returns, but investment experience has significant correlation with the likelihood of stock returns.Finally, based on the empirical results, we give some suggestion to the corresponding policy recommendations.