The Study On Differences Of Family Financial Asset Structure In China

The economy in China has witnessed a major development since the reform and opening-up policy.How to maintain and increase the assets has become a topic of concern for a growing number of families with the accumulation of wealth.Apart from saving deposits,the majority chose to invest in financial products such as stocks,bonds,options and futures,and gold and silver.Financial markets in China started later than those in developed countries,lagging far behind in market operations.There is plenty of irrationality in financial asset structures in Chinese families due to ignorance of financial management.In China the financial asset structure varies from family to family.It is significant to investigate the differences.For instance,with regard to financial investment strategies families in towns of the east are different from those in countries of the west because of different customs and financial markets.Hence this paper combined comparative and empirical analyses to explore the influences of areas(urban and rural),regions and wealth on financial asset structures on asset structures of families.First research background,significance,contents and methodology were presented following the introduction of the research background at home and abroad.Then defining the relevant concepts of family financial,combing family classical financial theory,inductive principles and characteristics of family financial asset allocation and theoretically analyses the influence factors of family financial asset structure.Next a descriptive statistical analysis was conducted of financial asset structures of families in rural and urban areas,in eastern and western areas and of different wealth levels,followed by an empirical analysis based on Tobit Model.In the end,the results of the experiments were investigated.Based on the studies above,this paper summarized factors influencing the financial asset structures of families in China and proposed countermeasures in terms of nationwide,urban and rural,regional and wealth level aspects respectively.Firstly,improve social welfare and reduce uncertainty for the residents.Secondly,strengthen the propaganda of financial knowledge and raise residents' sense of investment.Thirdly,increase support to agriculture and transform farmers' outlooks on family financial assets.Fourthly,control house prices and provide more lowrenthouses.Fifthly,crack down on the insider trading and improve laws and regulations on the financial markets.