Analysis of Chinese Household Financial Assets

With the rapid growth of the economy, more and more people in China are attaching great importance to asset allocation.In order to make better decisions while investing, people pay more attention to the influencing factors of asset allocation.Recently, a lot of research has been written about asset allocation.Few papers discussed how income level influences the situation of asset allocation.Therefore, the goal of this paper is to explain and analyze the asset allocation of different income groups in China by processing data and comparing.We found that low-risk deposits account for far more than other types of financial products, while high-risk stocks and other investments account for a low proportion, and financial assets lack diversified allocation.Households in first-tier cities with high GDP and developed economies are relatively more balanced in the ratio of financial assets, while third-tier cities tend to prefer financial products with low risk.The paper will help families in China gain more knowledge about asset allocation so that people will make better choices in practice.