Research On The Influence Of Credit Constraint On Household Financial Asset Allocation In China

In recent years,with the continuous development of China's economy,diversified financial market has created a good investment background for families.How to allocate financial assets reasonably and effectively becomes the focus of every family.Households' participation in financial markets and the proportion of their investments in financial assets can both measure whether a household has made effective asset allocation.At the same time,with the continuous expansion of the scale of China's household wealth,the scale of households' liabilities has also been gradually expanding.Various forms of loans have greatly changed the consumption and savings habits of residents and also affects the households' investment decisions.Therefore,this paper believes that the credit constraint of households is an important factor affecting the choice of household assets.First of all,this paper has made an induction of the related literature and theory.On the basis of the theory,this paper statistically analyzes the characteristics of China's household assets structure and household credit status.By establishing the Probit model and Tobit model,it used the the micro data in China's household financial survey(CHFS)in 2015 to demonstrate the relationship between credit constraints and household financial asset allocation by making an empirical analysis of household's participation of financial market and the proportion of asset investment.It draws the following conclusions:(1)Chinese households' financial assets are still dominated by savings and their participation in risky assets is still insufficient,but their participation in the informal financial market is relatively high.Nearly 40 percent of households face up to the credit constraints and the average value of financial assets held by households with credit constraints is generally lower than that of households without credit constraints.(2)Credit constraints have a significant negative impact on the household' savings,the stock assets,high-risk assets,low-risk assets and loans.The stronger the degree of household credit constraint is,the lower the probability and proportion of households holding savings,indicating that the credit constraint is not the cause of high household savings rate in China.At the same time,the increase in the degree of credit constraints will significantly reduce the probability and proportion of stock assets,high-risk assets,low-risk assets and loans,indicating that creditconstraints will seriously hinder households from actively participating in the financial market.(3)There are distinct differences in the impact of credit constraints on household financial assets between different regions.When divided by urban and rural areas,credit constraints can significantly reduce the holding probability of rural households' savings and loans as well as the holding probability of urban households' risky assets.At the same time,the restraining effect of credit constraint on the investment proportion of various financial assets of rural households is greater than that of urban households.When divided by regions,the impact of credit constraints on households in the east regions is significantly greater than that in the central and western regions.The stronger the credit constraints are,the smaller the probability of households in the east regions investing in risky assets and the weaker the investment intensity will be.