The Influence Analysis Household Debt Made On Financial Asset Allocation

In recent years,with the development of domestic financial market,the configuration of household financial portfolios appears the trend of division.At the same time,with the change of residents’ consumption concepts and the innovation of financial business,domestic household debt has also undergone a profound change in both scale and structure.This paper is based on the background of changes in the assets and liabilities of households in our country.In this paper,the family investors are the research objects.Through a survey of Chinese urban households investment behavior,we find that the household debt characteristics do affect the financial asset allocation.The study found that the debt ratio of households limits the possibility and depth that households participate in savings deposits while loans from formal finance ratio offsetting part of the negative effect.The holding of house debt has a significant positive effect on households entering stock market and other risky market.And the holding of necessary debt has a significant positive effect on households entering the insurance market.According to the above conclusions,in light of the risks that households excessive indebtedness may cause,the policy recommendations include: 1)deepening reforms in the financial sector and leading innovation of financial products;2)improving the multi-level household debt restraint mechanism;3)establishing a micro-level household debt monitoring and evaluation mechanism;4)improving the household debt risk response mechanism.