Study on the Impact of Financial Technology Development on the Diversity of Urban Household Financial Asset Allocation-based on CHFS Micro-Data

This paper aims to explore the impact of financial technology development on the diversity of urban households' financial asset allocation. With the rapid development of financial technology, the structure of financial markets and household financial behavior have undergone profound changes. This paper systematically studies the mechanism of fintech in household financial asset allocation through theoretical analysis and the micro-data of China Household Finance Survey (CHFS). First of all, this paper analyses the definition of financial technology, its development history, and the impact of financial technology on the financial market. Secondly, from the perspective of household financial asset allocation, this paper discusses how fintech affects households' financial decisions through information acquisition, transaction costs, risk management and other ways. The research finds that the development of fintech significantly improves the efficiency of households in obtaining financial information, reduces transaction costs, enhances risk management capabilities, and thus promotes the diversity of household financial asset allocation. In addition, this paper also analyzes the differences in financial asset allocation of households with different income levels, educational backgrounds and risk preferences under the influence of fintech. Finally, this paper puts forward policy recommendations, and believes that the popularization and application of financial technology should be further promoted, family financial literacy should be improved, and the financial market environment should be optimized to promote the diversification and rationalization of family financial asset allocation. The research in this paper provides a new perspective for understanding the impact of fintech on household financial behavior, and provides a useful reference for policy makers.