An Empirical Study On The Influencing Factors Of Household Financial Market Participation In China

With the development of China's economy and the improvement of people's living standards,China's household asset allocation has become an increasingly important topic.At present,China's household financial assets allocation situation has a large gap compared with foreign developed countries,and the household participation in financial market risk assets(stocks,funds,etc.)has a low breadth and depth.Therefore,this paper studies the factors influencing the participation of China's household financial market.By using the data of China Household Tracking Survey Data(CFPS)2014 and 2016 of Peking University China Social Science Research Center,the household liabilities are divided into mortgages to be repaid.The bank loan to be repaid outside the mortgage,the probit model and the tobit model are constructed to study whether the different types of liabilities have different effects on the breadth and depth of the household participation in the financial market,and the “borrowing experience” is used as the “funded bank loan”.Tool variables.This is conducive to more rational guidance to the household to participate in the financial market,but also conducive to the healthy development of China's capital market.The study found that the regression results of cross-sectional data and panel data indicate that bank loans other than home loans will have a significant impact on the breadth and depth of household participation in formal financial markets.In the case where the other variables in the model remain unchanged,for every 1% of the pending bank loans,the probability of the household holding the risky assets of the formal financial market will be reduced by 0.1 to 0.3,and the risky assets holding the formal financial market will account for the total assets.The ratio will be reduced by 0.015 to 0.35.Pending bank loans will positively affect the depth of household participation in the informal financial market.And for every 1% increase in bank loans,the proportion of households holding informal financial market risk assets to total assets increased by 0.02 to 0.17.This result is still established after removing the highest and lowest income of 5% and 10%,and the absolute value of the corresponding regression coefficient increases accordingly,and further uses the previous period's liabilities to participate in the return of the current financial market,eliminating the highest income.After the lowest 5% and 10%,this conclusion is still valid and the results are robust.The household mortgage loan is not robust to the return of the household to the formal financial market and the informal market.Housing value-added can positively affect the risk aversion and risk neutral families participate in the breadth and depth of formal financial markets,and at the same time,through comparison,the degree of influence,housing value-added for risk-neutral families to participate in the stock market and formal financial market risks The degree of impact of asset depth is greater than that of risk aversion.In the cross-sectional data regression in 2014,it was found that risk aversion would significantly negatively affect the breadth and depth of household participation in financial markets.Risk appetite significantly positively affected the breadth and depth of household participation in financial markets.The highest and lowest 5%,10% are still established,and the results are robust.Income will positively affect the breadth and depth of household participation in formal financial markets and informal financial markets.Household size will negatively affect the breadth and depth of household participation in formal financial markets.This regression result is also robust.