Research On The Influence Of Internet Finance On The Allocation Of Household Assets In China

In recent decades,the Chinese economy has continued to grow at a relatively high rate.On the one hand,the development of economy has accelerated the research and development of advanced technology in China,On the other hand,it also improves the overall wealth level of society.Family is the basic unit of social and economic activities.An increase in the overall wealth level of society naturally means an increase in total household assets.With the increase of total household assets and the decrease of Engel's coefficient,families in China have more investable assets.There thus are increased need for household asset allocation.However,there are certain restrictions on the types and quantities of disposable assets in the market.And the availability of financial services is low.What's more,family members lack awareness of asset allocation.Families in China prefer stablly risk-free assets of savings types.On the supply side,the traditional financial industry is stuck in the problem of cost.To meet the needs of the market,it needs to lay a large number of outlets in traditional mode.High operating costs limit the expansion of traditional financial business.There are biases in the types of financial products.In terms of subjective consciousness,the traditional financial industry of China tends to "28 Rules" and financial services offered are biased towards wealthy families.There is a lack of products for low-and middle-asset households in the market.The development of internet finance has improved this situation to some extent.Internet financial institutions promote their financial products through the internet-based platforms.It is important in the enlightening of cultivating the consciousness of asset allocation of family members in China to make people actively learn the knowledge of asset allocation.After having a certain accumulation of knowledge and awareness of asset allocation,people will rationally optimize the profitable risk of household asset allocation according to the situation and needs of their families to improve the structure of household assets.Internet finance is a different virtual network operation mode from traditional finance.Business development no longer depends on the traditional network,and the availability of financial services are greatly improved.At the same time,the radiation range of virtual shop is much larger than that of physical shop,which reduces the operation cost and increases the profit.Therefore,the income of Internet financial products is generally higher than that of the same type of traditional financial products.On the other hand,Internet finance can actively explore new markets and promote new products because of its relatively low cost of promotion and operation.Internet finance lays emphasis on the Long Tail Effect,which matches with the actual situation of Chinese family asset allocation market.The awareness of family asset allocation in China is awakened by enlightening and cultivating its knowledge and concept.At this time,most families with asset allocation awareness can allocate assets according to their own needs.Finally,we should cooperate with the traditional financial industry to provide better financial services.The development of Internet finance has improved the asset structure of Chinese families.The asset allocation of wealthy families and middle-low-asset families has been optimized to a certain extent.The reduction of savings assets and the increase of risky assets have improved the efficiency of household asset allocation in China.However,as an emerging industry,the Internet financial industry has its own shortcomings.Increased household holdings of risky assets and Internet financial products mean an increase in the overall risk of household asset allocation.So in the end,this paper puts forward some suggestions according to the imperfections of Internet finance.