Household Finance Asset Choice Of Chinese Families With Housing Loan Restriction

In 2006, Campbell proposes an independent new research direction called Household Finance at the American Finance Association Annual Meeting for the first time. The Household Finance will be along with asset pricing, corporate finance and some other traditional financial research direction to become a financial focus and hotspot in the research of the theory and practice. With the gradual improvement of household incomes, savings tools, stocks, funds, insurance, bonds, a variety of financial products and other financial instruments is rapidly developing. The choice behavior of household financial assets becomes increasingly diverse and complex.Real estate accounts for a large proportion of household physical assets, and is also the most important parts of home total assets. Real estate price fluctuates a lot in China. However, the price in key cities is still at high levels. Most families think highly of estate with consumption and investment, so the property housing for family asset allocation cannot be ignored. For most families, the property housing needs loans to support. Therefore, the study about choice behavior of household financial assets is worth attention under the constraints of housing loans.This paper bases on the theory of household portfolio choice, analyzes the factor of housing loans current situation, characteristics and influence of household portfolio choice, reveals the relation between housing loans and household portfolio choice using household financial statements and mean-variance method. On this basis, the paper takes the perspective of the family micro-finance, using the data of Chinese Household Financial Survey (CHFS) and household financial asset allocation situation to analyze whether the housing loans will affect the family participating in stock and bond markets, and then study risky assets with Probit Model and Tobit Model in order to provide information and reference for housing and household portfolio choice.The main contents of this paper include the following aspects:Firstly, on the basis of elaborating household financial assets’ connotation, characteristics, capital structure, asset types and feature, the paper analyzes the principles of household financial assets. At the same time, it imports the main models and methods, which lays theoretical basis for research problem.Secondly, the paper comments the development of housing loans:it analyzes the status of household financial assets from three aspects that includes household financial assets’ total characteristics, structural features and factors of assets’ choice; On the basis of development status, it combines with household financial statement to analyze the impact that mortgage loan exerts the choice of household financial assets, then according to the construction of mean-variance model, it reveals the relationship between mortgage loans and the choice of household financial assets.Finally, following the determination of relationship between mortgage loans and assets’ choice, it adopts the data of Chinese household financial survey and the allocated situation of household financial assets, and selects two explanatory variables and three explained variables. The explanatory variables include household individual feature and whether to select the loan to buy a house. The explained variables include stock accounts, bonds accounts and the proportion of risk assets. Then based on above-mentioned condition, it evaluates the effect that mortgage loans are applied to household financial assets.The paper innovatively discusses the influence that mortgage loans are applied to household financial assets:because existing research focuses on empirical research of household financial assets’ choice, the article adopts the micro household data of Chinese household finance survey to analyze the effect that mortgage loans are applied to household financial assets from three aspects including stock accounts, bonds accounts and the proportion of risk assets.