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How does competition for funds in the wealth management market impact Chinese households’ risky financial investment?

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  • Yanze Zhang
  • Ji Zhang

Abstract

This paper analyzes the relationship between the competition for funds in the wealth management market and Chinese households’ risky financial investment. Through mechanism analysis, we find that the competition for funds in the wealth management market reduces Chinese households’ risky financial investment by increasing the interest rate of financial products and making break-even commitments. Further analysis suggests that medium and high solvency households have more expectations for break-even and are more affected by the competition for funds in the wealth management market.

Suggested Citation

  • Yanze Zhang & Ji Zhang, 2023. "How does competition for funds in the wealth management market impact Chinese households’ risky financial investment?," Applied Economics Letters, Taylor & Francis Journals, vol. 30(10), pages 1327-1332, June.
  • Handle: RePEc:taf:apeclt:v:30:y:2023:i:10:p:1327-1332
    DOI: 10.1080/13504851.2022.2053047
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