Digital inclusive finance and asset allocation of Chinese residents: Evidence from the China Household Finance Survey

Abstract

Combined with the expected utility theory, this paper constructs a theoretical analysis framework including the development level, financial literacy, and intelligence level of Inclusive Finance, puts forward the hypothesis of the development of digital Inclusive Finance on household asset allocation, and uses the data of China’s household finance survey to verify the theory proposed in this paper. The empirical results show that: (1) digital inclusive Finance can significantly improve the allocation proportion of household risk assets, promote the rational participation of households in the risk financial market, and improve the allocation efficiency of household resources. (2) Digital inclusive finance can significantly improve the income level of family financial investment and optimize family investment decision-making.

Has Digital Financial Inclusion Narrowed the Urban–Rural Income Gap? A Study of the Spatial Influence Mechanism Based on Data from China

“…Currently, emerging finance and traditional finance coexist in the financial market, expanding financial service coverage and diversifying the forms of financial products. Digital financial inclusion can relieve consumers from liquidity constraints through reasonable and efficient resource allocation [63]. Moreover, the expansion of consumer demand promotes the upgrading of the industrial structure and simultaneously narrows the urban-rural income gap [64][65][66].…”

Unraveling the influence and mechanism of digital inclusive finance on household financial substitution: evidence from China

“…China's financial market developed late compared to other counties. These difficulties associated with traditional finance provide space and opportunities for the development of DIF in China (Li et al, 2022). DIF is a newly developing industry, formed based on the organic integration of digital technology and finance.…”

“…Studies in all these streams of literature tend to focus on the effects and mechanisms of DIF on the single economic behavior of households and the analysis of household economic behavior about each other. For example, previous studies have examined the relationship between DIF, and household financial investment and consumption behavior (He et al, 2022;Li et al, 2022;Yu et al, 2022). Particularly, how to measure the impact of DIF on household economic behavior when DIF affects both household financial investment and consumption has generally affected household behavioral choices and the inclusive application of DIF (Zhao et al, 2022).…”

“…China's financial market developed late compared to other counties. These difficulties associated with traditional finance provide space and opportunities for the development of DIF in China (Li et al. , 2022).…”

“…For example, previous studies have examined the relationship between DIF, and household financial investment and consumption behavior (He et al. , 2022; Li et al. , 2022; Yu et al.…”