An Analysis Of Fintech On Household Financial Assets Allocation

After 40 years of reform and opening up,China’s economy has developed rapidly,and the income level,living standard and welfare of households have also been continuously improved.The accumulation of household wealth has been increasing,requiring further asset allocation.In addition,the external economic environment has always been in a stable state of inflation,savings is not suitable for the preservation and appreciation of family property.In recent years,the state proposed to increase the property income of residents.In this context,family finance has been widely concerned by the academic community and produced a large number of excellent research results.Through literature review,we can find that the current household financial assets are mainly empirical studies,and the factors that affect the allocation of household financial assets can be summarized into two aspects: one is internal factors,such as demographic characteristics,background risks and incomplete market;Second,financial market development,macroeconomic,institutional culture and other external factors.In this paper,the control variables are selected on the basis of the existing literature.Fintech is a combination of emerging technologies and finance.The concept of Internet finance was first proposed in 2012.China’s fintech has entered a stage of rapid development and is now developing towards the direction of intelligence.The rise of fintech provides a good opportunity for the development of financial market innovation and household financial asset allocation,which is also the starting point of this paper.Based on some theories related to fintech,this paper argues that fintech can promote household participation in the financial market through the following mechanisms :(1)alleviate transaction friction in the financial market;(2)Weakening liquidity constraints that households may have;(3)Enhance family social interaction and financial literacy;(4)Increase the income and wealth of residents.This paper studies household financial asset allocation from three levels of market participation,asset structure and investment efficiency.Participation includes whether households participate in risk financial markets and how deeply they participate in financial markets--we construct financial asset diversification index;The asset structure analyzes the proportion of household risk financial assets,stocks,financial products and loans;Investment efficiency is measured by the Sharpe ratio.According to the value characteristics of the explained variables mentioned above,the Probit model was used for regression of binary selection variables,while the rest were deleted data,so we chose Tobit model.The results of baseline regression are as follows :(1)fintech promotes household participation in risk financial market and makes household financial asset portfolio more dispersed;(2)Fintech increases household investment in risky financial assets and the proportion of risky financial assets;(3)Fintech can significantly improve the efficiency of household investment.On this basis,heterogeneity analysis is also carried out.Finally,some suggestions are put forward.First,the government should improve the construction of fintech infrastructure and credit system,strengthen supervision of the financial market and guide households.Second,relevant institutions should improve the level of fintech application and innovate business models.Third,households should change their traditional investment concepts,actively learn financial and economic knowledge,and improve their financial literacy.