Owner-occupied Housing And Chinese Household Stock-Market Participation:Evidence From CHFS

Traditional asset choice theory assumption that:family configuration financial assets based on risk differences, the investment ratio only depends on the risk appetite of investors, most residents will invest a certain amount of stock. However, the reality scholars investigated in the United States, Italy and other countries precisely departures from the traditional theory predicted results, on the financial markets appearing the anomalies which traditional financial theory cannot explain-limited participation in the stock market, that is, the majority of people do not participate in the stock market, and participants’shareholdings are also significantly different.With the rapid development of the stock market, in recent years, more and more families participate in the stock market, the shareholding ratio also increases. However, constraints of households investing in the stock market factors are still exist.The myth of the high prices continues staged in China’s real estate market. As the family’s main assets, and dual attributes of consumption and investment, the importance of real estate in the family asset allocation cannot be ignored. For the phenomenon of the limited participation of China’s stock market, how to parse from the point of view of owner-occupied housing?From family micro-finance perspective, analyze the relationship between family owner-occupied housing and participation in China’s stock market. Mainly from two aspects that real estate investment and housing ownership to interpret the phenomenon of limited participation in the stock market.The paper is divided into five parts. First is the preamble, as the background of China’s stock market, finding the mystery of limited participation in stock market, and taking into account the particularity and importance of real estate in the family, and then determine the direction of this research from owner-occupied housing perspective to explain the phenomenon of limited participation in China’s stock market.Second, for the stock market limited participation phenomenon, mainly to answer four questions:the mystery is how to generate? How to explain this phenomenon in theory? What factors can affect the family limited participation in the stock market? How to explain the relationship between owner-occupied housing and limited participation in the stock market? According to the facts of traditional theory and financial market realities contradictory, interpret the generation of limited participation in the stock market, introduce behavioral finance theory results, brief overview of factors influencing the stock market participation, from real estate investment and housing ownership two aspects parse the limited participation of the stock market.Third, analysis the family real estate and participation in China’s stock market. Define and explain relevant concept, especially elaborate the owner-occupied housing ownership. Overview the changes in housing prices in China’s real estate market, family owner-occupied housing and household financial assets configuration characteristics. Briefly analysis of other four factors in the impact of participation in the stock market.Fourth, the use of Probit model and Tobit model confirms that family owner-occupied housing can affect domestic stock market participation. Real estate investment ratio the greater, the possibility of family involved in the stock market the lower. Compared with non-homeownership family, the probability of participating in the stock market and the stock investment ratio is higher in the homeownership family. From the reasons why family do not participate in the stock market, the household savings motive, and other factors to explain empirical findings.Fifth, put forward rationalization recommendations from government and family two aspects to further improve household stock market participation.