Research On Risk Preference And Asset Allocation Of Chinese Residents

With the rapid development of economy,the number of high net worth individuals in China is increasing gradually.The wealth available for investment of the residential sector is also increasingly accumulated,and the single asset allocation can no longer meet the investment demand.How to allocate household assets rationally and effectively to maintain and increase the value of wealth is an urgent problem to be solved.Firstly,this paper sorts out relevant literature and theories.Then a comparative analysis is made on the asset allocation of Chinese and American resident sector investors,and it is concluded that Chinese residents sector investors’ asset allocation is not reasonable,which are reflected in the fact that Chinese investors in the residential sector allocate more housing assets and invest too much savings in the allocation of financial assets,while other risky financial assets are less allocated.In the asset allocation of residents,risk preference(including objective bearing capacity and subjective risk attitude)plays an indispensable role.Therefore,the author mainly studies and discusses this unreasonable asset allocation from the perspective of risk preference.The empirical part of this paper quantifies the risk preference of Chinese residents’ sector investors with the risk aversion coefficient,and studies the change of risk aversion coefficient of Chinese residents’ household sector investors in different individuals at different time points through the method of time series analysis and cross section analysis,and finds out the influencing factors.Then this paper based on the research conclusion to better understand Chinese residents investors’ appetite for risk,and puts forward reasonable Suggestions to optimize the investors’ portfolio,alsocontribute to the growth of the entity enterprise,power transformation of industrial upgrading and promote China’s capital market run smoothly and efficiently.