The Difference Between North And South In Household Financial Asset Allocation In Chinese Households

In recent years,the development of China’s financial market has become increasingly mature,and in this context,the activity of Chinese households in the financial market has also increased significantly.Compared with developed countries,the structure of China’s financial market is not perfect,and the allocation of financial assets is constantly adjusting.The report of the 20 th National Congress of the Communist Party of China put forward new requirements for strengthening and improving the supervision of modern finance and strengthening the financial stability guarantee system,we must guard the bottom line of no systemic risks,continue to make efforts from multiple levels and deep angles,and work together from the level of the country,society and individuals.First,from the national level,the State Administration of Financial Supervision and Administration was established to control risks as a whole;From the social level,the financial regulatory framework and financial regulatory pattern were re-optimized;At the individual level,we consumers should strengthen the learning of our own financial theoretical knowledge,and continuously improve our financial quality and risk protection awareness.And the family,as the basic unit of society,as the most basic and extensive participant in the market,the importance of household finance is increasingly prominent.Due to the continuous upgrading of the market,various financial innovative products and financial instruments have emerged one after another,making household financial investment more selective.So,what are the characteristics of the financial asset allocation of Chinese households? Will the financial asset allocation structure of households change with regional changes?In response to these two questions,this paper uses the data of the survey conducted by the China Household Finance Survey and Research Center(hereinafter referred to as CHFS)of Southwestern University of Finance and Economics in 2009 on household micro-level related information,uses questionnaire survey statistics to measure the structure of household financial asset allocation in the north and south regions,analyzes the allocation preference of household financial assets in different regions,and concludes empirical analysis.From the perspective of regional factors,this paper is based on adaptive behavior theory.Taking the three criteria of latitude,precipitation and rice and wheat yield to divide the north and south regions,the study finds that there are differences in the financial asset allocation of Chinese households,which is manifested as the savings tendency of households in the north region is higher than that of southern households,and the household debt holding and household stock market participation in the southern region are higher than those in the northern region.Further research finds that cash,family-owned housing,family happiness,age of the head of household,education of the head of the household,and married status of the head of the household have a positive relationship with the allocation of household financial assets,which is conducive to the reasonable and effective allocation of financial assets by households.However,the health status of the head of household is inversely related to the allocation of household financial assets,and housing has the characteristics of both investment products and consumer goods,which is the major reason why households hold debts at present.Based on the above research and conclusions,it can be seen that there are differences in the allocation of financial assets between households in the north and south of China,and this paper puts forward several relevant policy suggestions:(1)Accelerate the innovation of financial products and design financial products with the characteristics of the North and the South;(2)Focus on the health differences between northern and southern residents,and pay attention to vulnerable families;(3)Transform the economic development model of the northern region and improve the risk awareness and financial literacy of northern residents;(4)Guide consumption upgrading and pay attention to the overall development of the southern region.The policy significance of this paper is to provide a new direction for China’s regional policies and promote the coordinated development of China’s regional economy through the new perspective of the north and south regions as the entry point.