The Impact of Inclusive Finance on Household Risk Financial Market Participation

Zhao Xinxin; Ma Yifei; Li Siqi; Si Zhongjie

doi:doi:10.11648/j.ijefm.20210904.14

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The Impact of Inclusive Finance on Household Risk Financial Market Participation

Zhao Xinxin, Ma Yifei, Li Siqi, Si Zhongjie

Published in International Journal of Economics, Finance and Management Sciences (Volume 9, Issue 4)

Received: 5 August 2021 Accepted: 30 August 2021 Published: 3 September 2021

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Abstract

It is a general rule that households will pay significantly more attention to management of family assets since their income has experienced a continuous increase, and Chinese families are no exception. With the Opening and liberalization of financial market in China, policies about financial inclusive service are put forward after the first decade of the 21^st century to support household finance. However, there are still rooms for improvement in the implement of the policy. It is still not very clear that how we can enhance its supposed role in family financial decisions and whether it has equal utility to household in various financial conditions and characters. So research must be made to better evaluate the effect of inclusive finance and help promoting its development. Based on 2017 Chinese Household Financial Survey (CHFS) data, the choices of household financial allocation including the possibility of risk financial market participation and the proportion of risk financial assets held by households are studied. By using factor analysis to combine both traditional and digital factors, a new inclusive finance index is calculated and the fact that inclusive finance can increase the possibility of household risk financial market participation is further proved. Moreover, by subdividing the sample, it is found that the utility of inclusive finance is greater in rural areas, among low-income households and in central and western China, and that the utility in urban areas is determined by household age structure, income level and financial literacy. As to the influence mechanism, inclusive finance can change household’s choice of asset allocation by increasing their financial literacy, which is measured by related questions from the questionnaire. Since inclusive finance is widely confirmed to promote the rational allocation of financial assets, the development of inclusive finance in rural areas, among low-income households and in central and western China should be more primarily supported to better tap their potential in financial sector, while the development in urban areas should be processed together with the increase of income and the popularized of financial knowledge.

Published in	International Journal of Economics, Finance and Management Sciences (Volume 9, Issue 4)
DOI	10.11648/j.ijefm.20210904.14
Page(s)	165-173
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2021. Published by Science Publishing Group

Keywords

Inclusive Finance, Household Finance, Risk Financial Market Participation, Financial Literacy

References

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APA Style

Zhao Xinxin, Ma Yifei, Li Siqi, Si Zhongjie. (2021). The Impact of Inclusive Finance on Household Risk Financial Market Participation. International Journal of Economics, Finance and Management Sciences, 9(4), 165-173. https://doi.org/10.11648/j.ijefm.20210904.14

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ACS Style

Zhao Xinxin; Ma Yifei; Li Siqi; Si Zhongjie. The Impact of Inclusive Finance on Household Risk Financial Market Participation. Int. J. Econ. Finance Manag. Sci. 2021, 9(4), 165-173. doi: 10.11648/j.ijefm.20210904.14

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AMA Style

Zhao Xinxin, Ma Yifei, Li Siqi, Si Zhongjie. The Impact of Inclusive Finance on Household Risk Financial Market Participation. Int J Econ Finance Manag Sci. 2021;9(4):165-173. doi: 10.11648/j.ijefm.20210904.14

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@article{10.11648/j.ijefm.20210904.14,
  author = {Zhao Xinxin and Ma Yifei and Li Siqi and Si Zhongjie},
  title = {The Impact of Inclusive Finance on Household Risk Financial Market Participation},
  journal = {International Journal of Economics, Finance and Management Sciences},
  volume = {9},
  number = {4},
  pages = {165-173},
  doi = {10.11648/j.ijefm.20210904.14},
  url = {https://doi.org/10.11648/j.ijefm.20210904.14},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijefm.20210904.14},
  abstract = {It is a general rule that households will pay significantly more attention to management of family assets since their income has experienced a continuous increase, and Chinese families are no exception. With the Opening and liberalization of financial market in China, policies about financial inclusive service are put forward after the first decade of the 21st century to support household finance. However, there are still rooms for improvement in the implement of the policy. It is still not very clear that how we can enhance its supposed role in family financial decisions and whether it has equal utility to household in various financial conditions and characters. So research must be made to better evaluate the effect of inclusive finance and help promoting its development. Based on 2017 Chinese Household Financial Survey (CHFS) data, the choices of household financial allocation including the possibility of risk financial market participation and the proportion of risk financial assets held by households are studied. By using factor analysis to combine both traditional and digital factors, a new inclusive finance index is calculated and the fact that inclusive finance can increase the possibility of household risk financial market participation is further proved. Moreover, by subdividing the sample, it is found that the utility of inclusive finance is greater in rural areas, among low-income households and in central and western China, and that the utility in urban areas is determined by household age structure, income level and financial literacy. As to the influence mechanism, inclusive finance can change household’s choice of asset allocation by increasing their financial literacy, which is measured by related questions from the questionnaire. Since inclusive finance is widely confirmed to promote the rational allocation of financial assets, the development of inclusive finance in rural areas, among low-income households and in central and western China should be more primarily supported to better tap their potential in financial sector, while the development in urban areas should be processed together with the increase of income and the popularized of financial knowledge.},
 year = {2021}
}

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TY  - JOUR
T1  - The Impact of Inclusive Finance on Household Risk Financial Market Participation
AU  - Zhao Xinxin
AU  - Ma Yifei
AU  - Li Siqi
AU  - Si Zhongjie
Y1  - 2021/09/03
PY  - 2021
N1  - https://doi.org/10.11648/j.ijefm.20210904.14
DO  - 10.11648/j.ijefm.20210904.14
T2  - International Journal of Economics, Finance and Management Sciences
JF  - International Journal of Economics, Finance and Management Sciences
JO  - International Journal of Economics, Finance and Management Sciences
SP  - 165
EP  - 173
PB  - Science Publishing Group
SN  - 2326-9561
UR  - https://doi.org/10.11648/j.ijefm.20210904.14
AB  - It is a general rule that households will pay significantly more attention to management of family assets since their income has experienced a continuous increase, and Chinese families are no exception. With the Opening and liberalization of financial market in China, policies about financial inclusive service are put forward after the first decade of the 21st century to support household finance. However, there are still rooms for improvement in the implement of the policy. It is still not very clear that how we can enhance its supposed role in family financial decisions and whether it has equal utility to household in various financial conditions and characters. So research must be made to better evaluate the effect of inclusive finance and help promoting its development. Based on 2017 Chinese Household Financial Survey (CHFS) data, the choices of household financial allocation including the possibility of risk financial market participation and the proportion of risk financial assets held by households are studied. By using factor analysis to combine both traditional and digital factors, a new inclusive finance index is calculated and the fact that inclusive finance can increase the possibility of household risk financial market participation is further proved. Moreover, by subdividing the sample, it is found that the utility of inclusive finance is greater in rural areas, among low-income households and in central and western China, and that the utility in urban areas is determined by household age structure, income level and financial literacy. As to the influence mechanism, inclusive finance can change household’s choice of asset allocation by increasing their financial literacy, which is measured by related questions from the questionnaire. Since inclusive finance is widely confirmed to promote the rational allocation of financial assets, the development of inclusive finance in rural areas, among low-income households and in central and western China should be more primarily supported to better tap their potential in financial sector, while the development in urban areas should be processed together with the increase of income and the popularized of financial knowledge.
VL  - 9
IS  - 4
ER  -

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Author Information

Zhao Xinxin

School of Economics, Shandong University, Jinan, China
Ma Yifei

School of Economics, Shandong University, Jinan, China
Li Siqi

School of Economics, Shandong University, Jinan, China
Si Zhongjie

School of Economics, Shandong University, Jinan, China

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APA Style

Zhao Xinxin, Ma Yifei, Li Siqi, Si Zhongjie. (2021). The Impact of Inclusive Finance on Household Risk Financial Market Participation. International Journal of Economics, Finance and Management Sciences, 9(4), 165-173. https://doi.org/10.11648/j.ijefm.20210904.14

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ACS Style

Zhao Xinxin; Ma Yifei; Li Siqi; Si Zhongjie. The Impact of Inclusive Finance on Household Risk Financial Market Participation. Int. J. Econ. Finance Manag. Sci. 2021, 9(4), 165-173. doi: 10.11648/j.ijefm.20210904.14

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AMA Style

Zhao Xinxin, Ma Yifei, Li Siqi, Si Zhongjie. The Impact of Inclusive Finance on Household Risk Financial Market Participation. Int J Econ Finance Manag Sci. 2021;9(4):165-173. doi: 10.11648/j.ijefm.20210904.14

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@article{10.11648/j.ijefm.20210904.14,
  author = {Zhao Xinxin and Ma Yifei and Li Siqi and Si Zhongjie},
  title = {The Impact of Inclusive Finance on Household Risk Financial Market Participation},
  journal = {International Journal of Economics, Finance and Management Sciences},
  volume = {9},
  number = {4},
  pages = {165-173},
  doi = {10.11648/j.ijefm.20210904.14},
  url = {https://doi.org/10.11648/j.ijefm.20210904.14},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijefm.20210904.14},
  abstract = {It is a general rule that households will pay significantly more attention to management of family assets since their income has experienced a continuous increase, and Chinese families are no exception. With the Opening and liberalization of financial market in China, policies about financial inclusive service are put forward after the first decade of the 21st century to support household finance. However, there are still rooms for improvement in the implement of the policy. It is still not very clear that how we can enhance its supposed role in family financial decisions and whether it has equal utility to household in various financial conditions and characters. So research must be made to better evaluate the effect of inclusive finance and help promoting its development. Based on 2017 Chinese Household Financial Survey (CHFS) data, the choices of household financial allocation including the possibility of risk financial market participation and the proportion of risk financial assets held by households are studied. By using factor analysis to combine both traditional and digital factors, a new inclusive finance index is calculated and the fact that inclusive finance can increase the possibility of household risk financial market participation is further proved. Moreover, by subdividing the sample, it is found that the utility of inclusive finance is greater in rural areas, among low-income households and in central and western China, and that the utility in urban areas is determined by household age structure, income level and financial literacy. As to the influence mechanism, inclusive finance can change household’s choice of asset allocation by increasing their financial literacy, which is measured by related questions from the questionnaire. Since inclusive finance is widely confirmed to promote the rational allocation of financial assets, the development of inclusive finance in rural areas, among low-income households and in central and western China should be more primarily supported to better tap their potential in financial sector, while the development in urban areas should be processed together with the increase of income and the popularized of financial knowledge.},
 year = {2021}
}

Copy | Download

TY  - JOUR
T1  - The Impact of Inclusive Finance on Household Risk Financial Market Participation
AU  - Zhao Xinxin
AU  - Ma Yifei
AU  - Li Siqi
AU  - Si Zhongjie
Y1  - 2021/09/03
PY  - 2021
N1  - https://doi.org/10.11648/j.ijefm.20210904.14
DO  - 10.11648/j.ijefm.20210904.14
T2  - International Journal of Economics, Finance and Management Sciences
JF  - International Journal of Economics, Finance and Management Sciences
JO  - International Journal of Economics, Finance and Management Sciences
SP  - 165
EP  - 173
PB  - Science Publishing Group
SN  - 2326-9561
UR  - https://doi.org/10.11648/j.ijefm.20210904.14
AB  - It is a general rule that households will pay significantly more attention to management of family assets since their income has experienced a continuous increase, and Chinese families are no exception. With the Opening and liberalization of financial market in China, policies about financial inclusive service are put forward after the first decade of the 21st century to support household finance. However, there are still rooms for improvement in the implement of the policy. It is still not very clear that how we can enhance its supposed role in family financial decisions and whether it has equal utility to household in various financial conditions and characters. So research must be made to better evaluate the effect of inclusive finance and help promoting its development. Based on 2017 Chinese Household Financial Survey (CHFS) data, the choices of household financial allocation including the possibility of risk financial market participation and the proportion of risk financial assets held by households are studied. By using factor analysis to combine both traditional and digital factors, a new inclusive finance index is calculated and the fact that inclusive finance can increase the possibility of household risk financial market participation is further proved. Moreover, by subdividing the sample, it is found that the utility of inclusive finance is greater in rural areas, among low-income households and in central and western China, and that the utility in urban areas is determined by household age structure, income level and financial literacy. As to the influence mechanism, inclusive finance can change household’s choice of asset allocation by increasing their financial literacy, which is measured by related questions from the questionnaire. Since inclusive finance is widely confirmed to promote the rational allocation of financial assets, the development of inclusive finance in rural areas, among low-income households and in central and western China should be more primarily supported to better tap their potential in financial sector, while the development in urban areas should be processed together with the increase of income and the popularized of financial knowledge.
VL  - 9
IS  - 4
ER  -

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