A Study Of The Impact Of Housing Holdings On Household Risky Financial Asset Allocation

Contemporary social life is inseparable from the family as a micro-object,and at the same time,it is also a player that plays a very crucial role in the financial market.Since Campbell,an American scholar,first formally introduced the concept of family finance in 2006,family finance has gradually evolved into an independent research topic in the field of finance and has become a new hot spot in financial investment research.In recent years,along with the rapid development of China’s economy,China’s household assets are steadily increasing,therefore,the demand for diversified asset allocation among Chinese resident households is also expanding,and the asset allocation of households is receiving more and more attention.However,the "China Urban Family Wealth Health Report 2019" shows that the current level of family wealth management in China is still at a "subhealthy" stage,and the asset allocation system of families is not perfect,and the asset allocation structure is not reasonable enough.Among China’s household wealth,housing assets and financial assets are the most representative.Housing assets are of high value and have both investment and consumption attributes,which have a great influence on household asset allocation decisions,while financial assets are highly liquid and flexible,which are conducive to the diversification of household asset allocation.This paper compares the current situation of domestic and foreign scholars’ research on housing and household risky financial assets in terms of the influence of non-housing factors and housing factors on household risky financial assets allocation,summarizes the research ideas,research focus and innovation points of this paper,and elaborates and introduces the relevant concepts and theoretical foundations involved in the research process.Through analyzing the current situation of allocation of household assets,household financial assets and housing assets in China,it is found that there is an obvious difference between rich and poor in the total amount of household assets among different groups,in addition,the asset composition of Chinese residents presents an unbalanced phenomenon,with housing assets accounting for a disproportionately high share of household assets and financial assets,especially risky financial assets,accounting for a disproportionately low share;housing loans account for a large share of household liabilities.This paper compares the current situation of domestic and foreign scholars’ research on housing and household risky financial assets in terms of the influence of non-housing factors and housing factors on household risky financial assets allocation,summarizes the research ideas,research focus and innovation points of this paper,and elaborates and introduces the relevant concepts and theoretical foundations involved in the research process.Through analyzing the current situation of allocation of household assets,household financial assets and housing assets in China,it is found that there is an obvious difference between rich and poor in the total amount of household assets among different groups,in addition,the asset composition of Chinese residents presents an unbalanced phenomenon,with housing assets accounting for a disproportionately high share of household assets and financial assets,especially risky financial assets,accounting for a disproportionately low share;housing loans account for a large share of household liabilities..This paper selects survey data from the CHFS2019 database and uses the Probit model and Tobit model to empirically test the impact of home equity and home loans on the probability of household allocation to risky financial assets and the proportion of allocation,dividing the entire study population into different subsamples according to the different housing needs of individual households,the different regions they live in,and the different annual income levels,and Heterogeneity analysis of the subsample as the study population.The following conclusions are drawn from the study: in terms of whether or not to allocate risky financial assets,households with housing assets have higher intention to participate in risky financial asset allocation,and housing assets have a wealth effect on households’ participation in risky financial markets;while households holding housing loans need to face continuous fixed repayment pressure in the long run,so housing loan holding inhibits the willingness to participate in risky financial markets.In terms of the allocation ratio of risky financial assets,the high proportion of housing assets and housing loans in the total assets of households will crowd out the proportion of households’ holdings of risky financial assets;in terms of heterogeneity analysis,households with investment-oriented housing needs and households located in the central and western regions and low-income households have a more significant impact on the investment decision of risky financial assets.Accordingly,this paper proposes some feasible suggestions for improving household asset structure and diversifying household investment risks from three perspectives: households,financial institutions and government departments.