Factors related to the risk tolerance of households in China and the United States

Implications for the future of financial markets in China

Authors

  • Sherman D. Hanna Human Sciences Department, Ohio State University
  • Kyoung Tae Kim Department of Consumer Sciences, University of Alabama
  • Lishu Zhang Department of Economics, ShenZhen University

DOI:

https://doi.org/10.61190/fsr.v27i3.3398

Keywords:

Survey of Consumer Finances, China Household Finance Survey, Individual investing, Risk tolerance

Abstract

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 percentage of households with stock assets was 9%, compared with 49% in the United States. 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.

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Published

2018-09-30

How to Cite

Hanna, S. D., Kim, K. T., & Zhang, L. (2018). 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, 27(3), 279–302. https://doi.org/10.61190/fsr.v27i3.3398

Issue

Vol. 27 No. 3 (2018): Fall 2018

Section

New Original Submission

License

Copyright (c) 2018 Academy of Financial Services

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