Socioeconomic Status Of Chinese Households And Household Financial Asset Portfolio Effectiveness

At the 20 th National Congress of the Communist Party of China,Comrade Xi Jinping made the following report on "promoting people’s well-being and improving their quality of life" : "Improving the policy system of distribution according to factors,exploring multiple channels to increase the factor income of the middle and low income people,and increasing the property income of urban and rural residents through multiple channels.income." Therefore,the study of household financial asset allocation behavior,especially the effectiveness of household financial asset portfolio,is not only helpful to guide residents to rational investment and increase household financial welfare,but also important for the development of China’s financial market and the formulation of policies related to financial innovation.This study analyzes household socioeconomic status(SES)as the independent variable to represent the comprehensive ability of households,and Sharpe ratio and Sortino ratio as the dependent variables to represent financial asset portfolio effectiveness,based on four rounds of China Household Financial Survey(CHFS)survey data in 2013,2015,2017 and 2019,and finds that household SES can significantly affect household financial asset portfolio effectiveness.This paper adopts a mediating effect for mechanism analysis,and the analysis concludes that household socioeconomic status affects financial asset investment efficiency through family members’ enhanced financial literacy.The heterogeneity analysis finds that the improvement of household socioeconomic status on the efficiency of household financial assets differs to a certain extent depending on the characteristics of households themselves,and households with more balanced financial asset allocation have higher investment returns on financial assets as a result of improving the same degree of household socioeconomic status;in addition,the effect of household socioeconomic status on the effectiveness of household financial asset portfolio is more obvious in urban households,which reflects the impact on This reflects the urgency of financial literacy education for households in backward areas,especially in rural areas.In terms of policy recommendations,this paper proposes that relevant departments should actively build a reasonable financial market construction,promote the market to innovate more categories and numbers of financial products to meet people’s growing demand for asset preservation and appreciation,and further strengthen financial literacy education to enhance the use of digital financial products and services in backward regions and disadvantaged groups,so as to better optimize household financial asset investment portfolios and promote household The significance of this study is to construct social variables.The significance of this study is to construct a new analysis path between social and financial variables and provide supportive suggestions with social policy orientation for household asset building.