A Study on the Determination of Household Portfolio Selection in China—Based on the Empirical Study on Households in the East

Abstract

Household exerts remarkable influence on the market-oriented economy. Regarding to the importance of household in financial market, the study on the determination of household investors’ portfolio selection has attracted tremendous attention of academic circle in recent decades. China Household Finance Survey (CHFS) has been established to conduct household finance research and it suggests that household investors’ asset allocation has been diversified in the recent decade with the prosperity of financial market and the booming household income. The study here aims to find out which determinations exerting effects on financial asset selection of Chinese household and the paths of the mechanism.

The paper will conduct both theoretical analysis and statistical analysis. With the help of Stata 12 and Eview 7.2 metrology software, the paper analyzes the influential factors of household financial asset selection and the interactional relationship among the hypothesized variables. Based on the empirical results and conclusions, the study can provide practical suggestion to household investor, asset manager and government.