ABSTRACT
In this paper, we analyse the relation between the development of digital inclusive finance (DIF) and household stock market participation, as well as asset allocation. Using the digital financial inclusion index developed by Peking University and data from the 2019 China Household Finance Survey, we find that DIF significantly facilitates the probability of stock market participation and the proportion of assets allocating to equities of Chinese households. We use an instrumental variable approach to alleviate the endogeneity problem and find that the benchmark findings remain robust.
Disclosure statement
The authors declare no conflict of interest.
Data availability statement
The data used to support the findings of this study have not been made available because of the confidentiality agreement. But it can be applied for at: https://chfs.swufe.edu.cn.
Correction Statement
This article has been republished with minor changes. These changes do not impact the academic content of the article.