Digital Finance and Household Financial Asset Allocation: An Empirical Study Based on CHFS Data

In the current developmental context, the world is entering an era of digitization and informatization, and digital finance is rapidly developing in China. This paper uses data from the 2019 China Household Finance Survey (CHFS) to empirically examine the impact of digital finance on household financial asset allocation. The findings reveal that the development of digital finance significantly increases the likelihood of household participation in financial markets. Further analysis of the mechanisms indicates that digital finance enhances household financial literacy, thereby raising the probability of their engagement in financial markets. This effect is particularly pronounced among rural households and low-income families.