Research On The Impact Of Income Structure On Household Financial Assets Allocation

With the development of financial innovation and financial inclusion in China,financial markets at all levels with the banking system as the main body have gradually sound and perfect,China's residents' financial demand is increasing,but the structural issues of financial assets allocation highlight,safe financial assets based on cash and deposits are the main financial assets allocation methods of most Chinese households,but the risky financial assets allocation is less,especially the middle and low risky financial assets.Such configuration structure is not only unfavorable for families to share the dividends of economic development,but also will have a negative impact on China's capital market in the long run,and then affect the economic transformation and upgrading of China.At the same time,our country is in the critical period of crossing the middle and low income trap,it is difficult to raise the household income greatly in the short term,and it is of great significance to optimize the income structure.The research object of this paper is the risk levels of household financial assets allocation in China,the research objective is the impact of income structure on household financial assets allocation.This paper reviews the previous literature in detail,draws lessons from the theory of asset selection and allocation,and puts forward the research hypothesis on this basis.Based on the data of China Household Financial Survey(CHFS)in 2015,this paper analyzes the current income structure and financial assets allocation hierarchy of Chinese households,in particular,financial assets are classified as safe financial assets,medium and low risky financial assets and high risky financial assets according to the benefit and risk levels,and then summarize the characteristics of household income structure and financial assets allocation.The core explanatory variables are proportion of wage income,operating income and transfer income.The proportion of safe financial assets,medium and low risky financial assets and high risky financial assets are the explained variables.By using Tobit model,the impact of income structure on financial assets allocation at different risk levels inhouseholds is tested empirically.Empirical research suggests that increasing the proportion of wage income,operating income and transfer income will significantly increase the proportion of household safe financial assets allocation,reduce the allocation of low and middle risky financial assets,especially the allocation of high risky financial assets.Among them,in the allocation of three types of financial assets,the impact of the proportion of operating income is obviously greater than that of wage income than that of transfer income.But the property income influence process is opposite,can reduce the household safe financial assets allocation proportion,increase the middle and low risky and the high risky financial assets allocation proportion.The implication of the study is that for families with different income structure we can reduce the degree of family risk aversion by perfecting the income guarantee mechanism,and actively innovate in the supply side to increase the supply of differentiated financial products,so as to improve the structure of household financial assets allocation.