The Impact of Extreme Climate on the Allocation of Household Financial AssetsBased on the Survey Data of China Household Finance Survey

Extreme climate not only poses severe challenges to social security issues but also becomes an important factor threatening the stability of the proportion of household financial assets. This paper uses the data from the China Household Finance Survey (CHFS) and the statistical data of climate disasters. By combining the heterogeneity analysis and mechanism test, it systematically explores the impact paths and differential influences of extreme climate events on the allocation of household financial assets. The study finds that extreme climate significantly reduces the proportion of household financial assets, and this effect shows significant heterogeneity among different groups and regions. The mechanism analysis reveals that the frequent occurrence of climate disasters intensifies households' concerns about future economic uncertainties, and their risk appetite is significantly reduced. This paper not only enriches the existing literature on climate financial risks but also provides suggestions and references for households to prevent the impacts of climate disasters and maintain household financial stability.