Research On The Behavior Of Residential Household Financial Assets Allocation In China

With the development of economy, the scale of household financial assets maintain a steady growth,and it is the result of China’s economic development and family wealth accumulation.The steadily progressing total household financial assets lay the foundation for the development of the financial industry,provide a lot of money for the finance of real economy,help solve the financial constraints faced by the economy, stimulate the vitality of enterprises and establish a stable foundation for the economy, promote the nation to achieve a sustained growth. what’s more, with the increase of family income, the accumulation of wealth is gradually increasing.To maintain and improve residents’ wealth,family should have a reasonable allocation of the household financial assets.If not,the unreasonable allocation could lead a misfortune to the family and mismatch to the whole financial market capital structure mismatch.Traditional finance theory stresses that investors are rational expectations. By the life cycle hypothesis, the investment decision is made by the investors according to the total expected lifetime income level. the future labor income is ralated to the expectation of future economic situation. The uncertainty of future economic development also added the uncertainty of future labor income. At the financial market,the point that the supply and demand of financial assets is determined by external factors and independent of investor expectations is not true.Therefore, expectations of investors should be taken into the investing decisions of the family financial assets. In this paper,we use the data collected from China Household Finance Survey. According to the answers of respondents to questions in the questionnaire, the family’s expectations of future economic conditions are divided into three categories,including optimism and pessimism about future economic conditions and economic situation remaining the same in the future. And the paper selects the residents’ wage income, age,risk attitude, level of education, gender, marital status, family size,rural or urban and the geographical distributions as control variables. By using Probit model and Tobit model, the paper analysis the relationship between family’s expectations of future economic conditions and the family financial asset allocation. The paper mainly analyzes the influence of the different expectations of future economic conditions on the participation of stock market and risk financial markets,and analyzes the influence of the different expectations of future economic conditions on the proportion of the stock assets and the risk financial assets investment.Compared to the investors who think economic situation remains the same in the future, optimism and pessimism about future economic conditions lead the investors to decrease the probability of investing in the stock market and the proportion of the stock assets.However, expectations of future economic conditions have no affect on the possibility of participation of risk financial markets and the proportion of risky financial assets.