Housing Types, Financial Literacy, and Household Financial Investment Behavior

It is well known that the past decade has been a golden period for Chinese real estate development in China. Houses, as a major asset class, have become a guarantee for the appreciation of residents’ wealth. In recent years, guided by the policy of “housing for living, not for speculation,” the contribution of real estate to wealth is decreasing. Chinese households are gradually shifting their asset allocation from physical assets like real estate towards financial assets. Citic Securities predicts that Chinese households will transfer $18 trillion USD into financial products over the next nine years. This structural shift in asset allocation is beneficial not only for increasing household property income but also for adjusting income distribution gaps and promoting macroeconomic growth.