Study On Differences In Urban And Rural Household Financial Assets Allocation In China

With the development of inclusive finance,more and more households are participating in the financial market,but the financial asset allocation behavior of the family has become more complicated.Reasonable financial asset allocation can not only increase household income,but also promote the healthy development of financial markets.Therefore,in-depth study of the characteristics and differences of financial asset allocation in China and urban and rural households is not only beneficial to guiding residents' asset allocation behavior,but also optimizing family finance.The asset structure is designed to increase household income and to help achieve financial inclusion in urban and rural areas.This paper uses a combination of theoretical analysis,data statistics and empirical testing.In the theoretical analysis,based on the income hypothesis,life cycle theory and modern asset portfolio theory,the paper analyzes the impact mechanism of life cycle,family wealth,financial literacy and urban-rural dual economy on family financial asset allocation.In the statistics,this paper uses the 2015 China Household Financial Survey data to analyze the characteristics and differences of financial asset allocation in China and urban and rural areas.In the empirical test,this paper first adopts the propensity score matching method to compare the differences in the proportion of various financial assets while ensuring that other characteristics of urban and rural households are more similar.Secondly,the influencing factors are selected for factor analysis,and the factors affect urban and rural areas.The degree of family financial assets is different,the reasons for the differences are determined,and relevant policy recommendations are proposed.The study found that:(1)China's household investment financial assets are more abundant,but the proportion of holding risk assets is still small.In addition,in different life cycles or family wealth levels,risk attitudes,family-selected asset types and holdings are also different.(2)The allocation of financial assets of urban and rural households tends to be diversified,but there is still a huge difference in the allocation of various types of financial assets.Compared with urban households,rural households have a much higher preference for risk-free assets when investing.And urban and rural families will have different asset allocation behaviors at different ages and income levels.(3)There is no significant difference in the proportion of financial assets in household assets in urban and rural households in China,but the share of various financial assets is quite different.China's urban and rural households prefer to hold savings,but rural households pay more attention to the liquidity of assets,and the proportion of investment in risk assets is much lower than that of urban households.Among them,the difference in the proportion of urban and rural households holding bonds is the smallest,and the proportion of holdings of wealth management products is the largest.(4)Financial literacy factors,external market factors,household long-term economic situation and household mobile economy are the main factors affecting the financial assets allocation of households,but these factors have different effects on urban and rural households.Financial literacy factors are the first factor affecting the allocation of urban household financial assets,while external market factors are the first factors affecting the allocation of rural household financial assets.Based on the analysis results,this paper puts forward relevant policy recommendations,and believes that only by popularizing family financial education,improving residents' financial cognition,optimizing the financial market environment,ensuring the safety of residents' investment,improving the income level of residents and improving the family's economic situation can China contribute to China.Healthy development of urban and rural finance.