The Impact of China’s Population Ageing on Household Financial Asset Allocation

The acceleration of population ageing in China will inevitably increase the burden of social old-age care and have significant impacts on the development of financial markets. The rational allocation of financial assets can enable households to acquire more property income and facilitate the appropr...

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Main Author:	Haidong, Yuan
Format:	Thesis
Language:	English English English
Published:	2024
Subjects:	HB Economic Theory HG Finance
Online Access:	http://ir.unimas.my/id/eprint/44395/3/Student%20Declaration%20of%20Original%20Work.pdf http://ir.unimas.my/id/eprint/44395/4/Yuan%20Haidong%20%2824pgs%29.pdf http://ir.unimas.my/id/eprint/44395/5/Thesis%20PhD%20Yuan%20Haidong%20%28fulltext%29.pdf
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spelling	my-unimas-ir.443952024-02-26T03:29:50Z The Impact of China’s Population Ageing on Household Financial Asset Allocation 2024-02-21 Haidong, Yuan HB Economic Theory HG Finance The acceleration of population ageing in China will inevitably increase the burden of social old-age care and have significant impacts on the development of financial markets. The rational allocation of financial assets can enable households to acquire more property income and facilitate the appropriate allocation of social capital. Meanwhile, population ageing is a critical factor influencing the financial asset allocation of households. This study investigates the impact of population ageing on household financial asset allocation using data from the China Household Finance Survey (CHFS) in 2015, 2017, and 2019. From previous research findings, empirical studies specifically focused on China, particularly those utilizing micro level household data, are still in their nascent stage, with limited research outcomes. Furthermore, this study introduces financial literacy as a moderating variable and risk attitude as a mediating variable, aspects that have been relatively less explored in existing literature. The study finds that ageing has a significantly negative effect on the allocation and depth of household risky financial assets. After conducting a robustness check using a two-way fixed effects model, the conclusion remains robust. This study investigates the influencing mechanisms from two perspectives: risk aversion and financial literacy. From the perspective of the mediating variable, ageing enhances the risk aversion of household heads, which in turn inhibits household investment in risky financial assets. From the perspective of the moderating variable, the inhibitory effect of ageing on investment in risky financial assets gradually weakens with the improvement of financial literacy. In addition, household savings are the premise and foundation of investment. This study examines the impact of population ageing on household savings rates using micro-level household data in China. The regression results based on a two-way fixed-effects model show that ageing has a significant negative effect on household savings rates. This indicates the existence of significant lifecycle effects in the changes of household savings rates in China. The robustness of the conclusion is confirmed after replacing the calculation method of the explained variable. The findings of this study provide empirical evidence for the financial asset allocation behaviour of micro households from the perspective of population ageing. This offers a basis for policymakers to make informed decisions and enhance decision making effectiveness, as well as laying a solid foundation for future research. Yuan Haidong 2024-02 Thesis http://ir.unimas.my/id/eprint/44395/ http://ir.unimas.my/id/eprint/44395/3/Student%20Declaration%20of%20Original%20Work.pdf text en staffonly http://ir.unimas.my/id/eprint/44395/4/Yuan%20Haidong%20%2824pgs%29.pdf text en public http://ir.unimas.my/id/eprint/44395/5/Thesis%20PhD%20Yuan%20Haidong%20%28fulltext%29.pdf text en validuser phd doctoral Universiti Malaysia Sarawak Faculty of Economics and Business
institution	Universiti Malaysia Sarawak
collection	UNIMAS Institutional Repository
language	English English English
topic	HB Economic Theory HG Finance
spellingShingle	HB Economic Theory HG Finance Haidong, Yuan The Impact of China’s Population Ageing on Household Financial Asset Allocation
description	The acceleration of population ageing in China will inevitably increase the burden of social old-age care and have significant impacts on the development of financial markets. The rational allocation of financial assets can enable households to acquire more property income and facilitate the appropriate allocation of social capital. Meanwhile, population ageing is a critical factor influencing the financial asset allocation of households. This study investigates the impact of population ageing on household financial asset allocation using data from the China Household Finance Survey (CHFS) in 2015, 2017, and 2019. From previous research findings, empirical studies specifically focused on China, particularly those utilizing micro level household data, are still in their nascent stage, with limited research outcomes. Furthermore, this study introduces financial literacy as a moderating variable and risk attitude as a mediating variable, aspects that have been relatively less explored in existing literature. The study finds that ageing has a significantly negative effect on the allocation and depth of household risky financial assets. After conducting a robustness check using a two-way fixed effects model, the conclusion remains robust. This study investigates the influencing mechanisms from two perspectives: risk aversion and financial literacy. From the perspective of the mediating variable, ageing enhances the risk aversion of household heads, which in turn inhibits household investment in risky financial assets. From the perspective of the moderating variable, the inhibitory effect of ageing on investment in risky financial assets gradually weakens with the improvement of financial literacy. In addition, household savings are the premise and foundation of investment. This study examines the impact of population ageing on household savings rates using micro-level household data in China. The regression results based on a two-way fixed-effects model show that ageing has a significant negative effect on household savings rates. This indicates the existence of significant lifecycle effects in the changes of household savings rates in China. The robustness of the conclusion is confirmed after replacing the calculation method of the explained variable. The findings of this study provide empirical evidence for the financial asset allocation behaviour of micro households from the perspective of population ageing. This offers a basis for policymakers to make informed decisions and enhance decision making effectiveness, as well as laying a solid foundation for future research.
format	Thesis
qualification_name	Doctor of Philosophy (PhD.)
qualification_level	Doctorate
author	Haidong, Yuan
author_facet	Haidong, Yuan
author_sort	Haidong, Yuan
title	The Impact of China’s Population Ageing on Household Financial Asset Allocation
title_short	The Impact of China’s Population Ageing on Household Financial Asset Allocation
title_full	The Impact of China’s Population Ageing on Household Financial Asset Allocation
title_fullStr	The Impact of China’s Population Ageing on Household Financial Asset Allocation
title_full_unstemmed	The Impact of China’s Population Ageing on Household Financial Asset Allocation
title_sort	impact of china’s population ageing on household financial asset allocation
granting_institution	Universiti Malaysia Sarawak
granting_department	Faculty of Economics and Business
publishDate	2024
url	http://ir.unimas.my/id/eprint/44395/3/Student%20Declaration%20of%20Original%20Work.pdf http://ir.unimas.my/id/eprint/44395/4/Yuan%20Haidong%20%2824pgs%29.pdf http://ir.unimas.my/id/eprint/44395/5/Thesis%20PhD%20Yuan%20Haidong%20%28fulltext%29.pdf
_version_	1794023050070458368

The Impact of China’s Population Ageing on Household Financial Asset Allocation

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