Research on the impact of digital financial development on the allocation of household financial assets in my country

Abstract

With the rapid development of digital technology, digital finance is gradually changing the way Chinese households allocate their financial assets. This paper, entitled "A Study on the Impact of Digital Finance Development on the Allocation of Chinese Household Financial Assets", conducts an in-depth discussion on the impact of digital finance on the allocation of household financial assets from the perspectives of theoretical analysis and literature review. First, by sorting out the definition and classification of digital finance, this paper summarizes the current status of digital finance development at home and abroad and its potential impact on residents' financial behavior. Second, based on behavioral finance and information asymmetry theory, this paper analyzes how digital finance affects residents' financial asset allocation decisions by improving information acquisition efficiency, reducing transaction costs, and providing diversified financial products. The study found that the development of digital finance helps residents to obtain financial information more conveniently, lower investment thresholds, and increase the availability of financial products, thereby prompting residents to diversify their asset allocation. However, the development of digital finance also brings new risks and challenges, such as information security issues and financial fraud risks, which require the government, financial institutions, and residents to jointly respond. Finally, this paper puts forward policy recommendations to promote the healthy development of digital finance, including improving the regulatory system, improving residents' financial literacy, and promoting technological innovation in financial institutions. Through these measures, digital finance can better play a positive role in optimizing the allocation of residents' household financial assets and promote the healthy development of the financial market.