Abstract After the promulgation of the new regulations, China's financial market is facing profound changes, and the role of residents' financial knowledge level in investment behavior is more prominent. Based on the bank financial products, using the 2015 China Household Financial survey data (CHFS), this paper empirically tests the impact of financial knowledge on household participation in the financial market. The empirical results show that there is a significant inverted U-shaped relationship between financial knowledge and financial participation. This means that when the residents' financial knowledge reaches a high level, the proportion of their original bank financing as a relatively safe asset will decline; on the contrary, if the level of financial knowledge is set, the breaking of rigid payment of products will lead to the passive withdrawal of residents from the financing market. Therefore, strengthening residents' financial education, financial risk and investment knowledge is an important condition for the smooth transformation of bank financing and even the whole asset management market.
JIA Xianjun. How Does Financial Knowledge Affect Household Participation in Financial Market: Empirical Analysis Based on CHFS Data. Economic Survey, 2020, 37(4): 0159.
2020, Vol. 37 
