Factors Related to the Risk Tolerance of Households in China and the United States: Implications for the Future of Financial Markets in China
Hanna, S.D., Kim, K.T., & Zhang, L. (2019). Factors related to the risk tolerance of households in China and the United States: Implications for the future of financial markets in China. Financial Services Review, Forthcoming
41 Pages Posted: 5 Feb 2019 Last revised: 21 Feb 2019
Date Written: January 23, 2019
We analyzed factors related to the financial risk tolerance of Chinese households, using the 2011 China Household Finance Survey (CHFS). The risk tolerance question was similar to one in the U.S. Survey of Consumer Finances (SCF), and we found that CHFS respondents had slightly higher risk tolerance than SCF respondents, but the percent of households with stock assets was 9%, compared to 49% in the U.S. Our multivariate analyses found many household characteristics in the CHFS had effects on risk tolerance similar to those found in the 2013 SCF. We discuss implications for the future of Chinese investment markets.
Keywords: Risk Tolerance, Individual Investing, China Household Finance Survey, Survey of Consumer Finances
JEL Classification: D14, G11
Suggested Citation: Suggested Citation