Research On China’s Household Financial Influence Factors

Since 1980s, China achieved a rapid economic development. The growth of household income and the development of the capital market, making the supply and demand of household financial assets are increasing. Household financial choice behavior became complex and a series of related problem arise.The research on influencing factors of household financial asset allocation could help build the family financial research theoretical framework. This research can also put forward some scientific advices on portfolio of households to prevent risk and realize investment objectives. Researchon diverseneeds and preferences of different households can help financial institutions to improve product design, drivefinancial innovation, and segment market, in order to achieve optimal allocation of resources in society. At a macro level, the flow of household financial assets can reflect the economic expectations of residents; household financial investment behavior can be regarded as a feedback signal of the various policies. This research will contribute to the development of national macro-control policies. All these are the significance of the topic of this article.This article applied an integrated use of theoretical analysis and empirical analysis, and can be divided in followed five parts:At first, this article introduced the research background and significance, sumed up the main achievements of foreign theories and research on domestic financial assets, and proposed a research idea.Next, this article introduced China Household Financial Survey (CHFS) and cleaned the data.Again, this article explored the data structure, and by the establishment of confirmatory factor analysis model, studied the influence factors of China’s household financial assets allocation.Finally, this article made some conclusions and recommendations.