Impact of the COVID-19 pandemic on household financial asset allocation: A China population study

Abstract

During the COVID-19 pandemic, the Chinese government implemented a “dynamic zero” epidemic prevention policy, which led to an increase in the likelihood of business shutdowns, increased uncertainty about people's income, and changes in people's psychological expectations, which in turn influenced their behavioral choices. This study aims to understand the impact of COVID-19 and other major public health emergencies on household financial asset allocation. To do so, we conducted an online survey of 712 people in China to measure household financial asset allocation behavior during three different time periods: pre-pandemic, mid-pandemic, and post-pandemic. At the same time, we analyzed the impact of sociodemographic characteristics on risk attitudes and the differences in household asset allocation decisions at different pre-pandemic time points among people with different risk attitudes. The results show that household financial asset allocation changed significantly before, during, and after the pandemic, and residents' precautionary savings increased. In addition, gender, education level, occupation, and annual income have significant effects on risk preferences. The pandemic leads to increased uncertainty in economic and social development, people's psychological expectations of economic development play an important role in household financial asset allocation.

Why do parents employ helicopter parenting in the post‐COVID‐19 era? An actor‐partner interdependence mediation model

“…The Chinese government promulgated and implemented strict pandemic prevention policies and measures (hereafter referred to as “dynamic zero‐COVID” policies), effectively controlling the pandemic's large‐scale outbreak. The characteristics of the pandemic in China during this period are consistent with the core features of the postpandemic era described in previous research (Jia et al, 2022; Li et al, 2022). The current study was conducted during this period.…”

“…The majority of previous research shows that helicopter parenting is closely and positively associated with children's adaptation and health problems (such as low self‐efficacy, low interpersonal skills, decisional procrastination, depression, and substance abuse; Cook, 2020; Darlow et al, 2017; Wu et al, 2023). Accordingly, it is necessary to investigate the factors that influence helicopter parenting in the current postpandemic era (with the recurrence of small‐scale pandemic outbreaks as one of the core features; Jia et al, 2022; Li et al, 2022).…”

“…self-efficacy, low interpersonal skills, decisional procrastination, depression, and substance abuse; Cook, 2020;Darlow et al, 2017;Wu et al, 2023). Accordingly, it is necessary to investigate the factors that influence helicopter parenting in the current postpandemic era (with the recurrence of small-scale pandemic outbreaks as one of the core features; Jia et al, 2022;.…”

The impacts of non-farming income on rural household energy choices: Empirical evidence from China

“…The conclusion was robust and follows the expectation of the energy ladder theory. In addition, during the COVID-19 pandemic, the government implemented a "dynamic zero" epidemic prevention policy, which also might influence people's energy choices (Jia et al, 2022). Future research is thus recommended to investigate whether the rural household energy choices will be further changed during COVID-19.…”

Comparative analysis of the influence of Chinese urban and rural family cultures on household financial asset allocation

“…Some scholars have also conducted research on the allocation of household financial assets from micro-perspectives such as household economic situations and the individual characteristics of members. For example, the more wealth a family has, the more willing that family is to participate in financial market investment ( Jia et al, 2022 ; Mulat, 2022 ). Moreover, family size and annual income affect the choice of financial assets ( Donkers et al, 2001 ; Yavas and Malladi, 2020 ).…”