Abstract:Consumer finance behavior is a multidisciplinary research field. In the past decade, it has received attention from mainstream economist and finance scholars. The research on consumer financial behavior focuses on how to define, describe, understand and predict, change, develop and compare consumers’ financial behaviors. This paper briefly reviews research on these six aspects of consumer financial behavior in US and discusses the relationship between consumer financial education and consumer financial behavior and also the relationship between consumer financial behavior and consumer welfare. Finally, I bring about several suggestions regarding the consumer finance research in China.
Key Words:Consumer Finance Behavior; Consumer Financial Education; Consumer Welfare

Abstract:Conducting a survey of consumer finance is an important way to obtain data for the study of household finance.A national survey of consumer finance of 24 cities in China has been conducted by CCFR of Tsinghua University in 2010. Using the survey data, this paper details some evidence on family’s balance sheet, income　and　expenditure, financial conscious, borrowing, lending and investment. Finally, we comment on the Characteristics of household finance founded in this survey in China.
Key Words:Consumer Finance; Survey of Consumer Behavior; Investments; Borrowing and Lending

Abstract:The importance of consumer finance increases with promoting domestic demand to boost the economic development, nevertheless, regional difference of consumer finance emerges with the unbalanced economic development. This paper aims to research the influence on consumption by consumption upgrading，inadequate social security and unbalanced regional development, using the panel data of urban households borrowing and lending expenditure and combining the economic transformation characters. It is concluded that the regional difference is widespread in quality and quantity. The positive relationship of consumption with consumption upgrading, social security and deposit exists nationally. Mortgage and education significantly influence consumption in Midwest region, while insurance in the East. Government should grasp the opportunity of consumption upgrading and social security improving and continue to enhance the education input, introduce talents, increase development efforts in Midwest to improve the local residents， population quality, income and savings, in addition to relax the borrowing restrictions.
Key Words:Household Asset Portfolio；Consumer Finance；Regional Difference；Consumption Upgrading；Social Security

Abstract:This paper uses household survey micro-data and “assets involved”  model (probit model) and “assets ratio” (Tobit model) model to discuss the relationship of health status and household asset allocation behavior. The results show that  investors’ health status does not significantly affect his decision about participation in the stock and risk asset markets after we control for wealth, income and other factors in the model. However, it does affect how much his family invests in the stocks or the risk assets. After controlling insurance condition or planning horizon, the influence of investors’ health status is still significant. The investors’ attitudes toward risk and their bequest motive can partly explain why unhealthy investors allocate less wealth in stocks or the risk assets.
Key Words:Household Portfolio Choice; Health Status; Household Survey Micro-Data

Abstract:Using China urban household survey data collected from 41 cities in 2009, this paper documents the stylized facts of the Chinese urban household’s assets and liabilities and explores the causes behind them. Descriptive statistics show that household assets increase with household head’s age, education level and family income levels, while household debts decreases with those characteristics. Household assets and liabilities exhibit significant regional differences. Empirical study reveals that the household head’s age, educational level, health status, household income level and family size are not only the key determinants of household assets/liabilities choices, but also the most important factors that affect the amount of assets and liabilities hold by households; Further study shows that household net worth are also mainly affected by these factors, but their effects varies across different families. We further study the financial pressure of different households and find that families with large size and whose household heads are younger, less educated or with poorer health are more vulnerable to adverse financial market shocks.
Key Words:Household Assets-Liabilities

Abstract:This paper mainly investigates the trading behavior of individual investors in Taiwan stock market. This paper first constructs an indicator of investors’ trading imbalance ── net individual trading. This index reflects the intensity of individual trading imbalance. Using this index, we research the trading behavior of individual investors. We first research the short\|horizon dynamic relation between the individual trading and stock returns and then we can find the trading strategies of individual investors. Second we study the return prediction of individual net trading and then analysis whether individual trading is informed trading. The paper finds: individual investors in Taiwan stock market adopt negative feedback trading strategies and a strong disposition effect is found in the transaction of individual investors. Second, the information content of individual trading is low. And individual investors profit from two channels: overreaction and price press.
Key Words:Individual Investor; Trading Strategies; Return Prediction; Overreaction; Price Press

Abstract:Monetary or fiscal policy is commonly used for government to stabilize the housing market across countries all over the world, and its performance is concerned about by all the market participants and academics. The paper builds resident’s utility function based on non-housing and housing consumption, resident makes choices among risk-free investment, housing and financial investment. Rational resident maximize his utility to deal with macro\|regulations, such as real estate taxes, down payment loan ratio and mortgage rates. The paper calibrates parameters of expectations on financial markets and housing market, and makes a numerical simulation of possible policy intervention on housing market. Numerical analysis shows that residents response to the proportion of mortgage loans most sensitively. The results provide a theoretical basis for the government’s countercyclical policy of regulation on housing market, and also reduce costs of policy making.
Key Words:Utility Function; Business Cycle; Countercyclical Policy

Abstract:Based on the theory of consumer behavior and behavioral economics theory, this paper discussed the relations among consumer sentiment, price and consumption in different situations separately, through applying a two-period economic model and numerical simulation. The results showed that: consumer sentiment will affect the price volatility and the effectiveness of the monetary policy implementation. We must take into account of the consumption habits of the residents when we make interest rate policy. The consumer sentiment has different effects on price during different economic cycles. The country’s income distribution policy will affect the practice effect of price regulation in the case of consumer heterogeneous.
Key Words:Consumer Sentiment; Inflation; Over-optimistic; Over-pessimistic

Abstract:Using transaction-level data on Chengdu housing market (2004—2006), we provide evidence on how central monetary policies (mortgage rates in particular) have affected the individual decision on the regional housing market of China. Our empirical study demonstrates that the mortgage rate policy appeared to be much more effective. The evidences show that the adjustments of long-term mortgage rate and short-term mortgage rate have effectively impacted individual housing buyers’ loan decision: when the long-term mortgage rate increases by 0.1 percent point relative to the short-term mortgage rate, the probability of a buyer to choose short-term mortgage loan increases by 8.4 percent. In order to address the potential endogeneity problem in our estimation, we utilize a natural experiment. In particular, we identify the different patterns of mortgage rates policy on commercial mortgage and on collective housing fund loan and use the later as a control group. We also find down payment rate has not been strictly implementation by local banks.
Key Words:Financial Regulation; Mortgage Rate; Down Payment Rate

Abstract:With a continuous increase in life expectancy, longevity risk, which has been increasing quickly in recent years, doesn’t get enough attention. Annuities, which can be effective tools in hedging longevity risk and enhancing consumers’ utility, should play a central role in retirement planning. By constructing a dominant strategy model with considering the mortality risk and bequest motives of consumers, this paper addresses the decision problem of optimal annuitization time in retirement planning. Although the dominant model is one-period model, it’s fit for the analysis of multi-period decisions. Computational results are provided to analyze the effects on decisions of different variables, such as consumers’ bequest motives and risk aversion, mortality fee, profile of annuity yield and risk.
Key Words:Longevity Risk; Annuitization Time; Bequest Motives; Risk Aversion Coefficient

Abstract:The outbreak of the Subprime Crisis proves that the Protection for Financial Consumer has become the key issues of sustainable development of the financial system. Therefore, the research on these problems is of great theoretical-value and practical significance. In this paper, we  focus on the reality of retail financial market. Through constructing a theoretical model based on the interactive features of both supply and demand, we  analyze potential causes of damage to the consumers’ interests under the current trading patterns in order to provide the theoretical basis for Financial Consumer Protection.
Key Words:Financial Consumer Protection；Retail Financial Products；Model Analysis

Abstract:This paper proposed that the petroleum retailers can issue oil cards with options. This innovation may achieve the following three goals: (1) to provide an oil price risk management tool to consumers; (2) to provide a new promotion way for oil retailers; (3) to promote market-oriented reformation of the refined oil. This paper firstly designs the oil card with option. Then the Monte Carlo simulation method is applied to price the oil cards. Next, the related hedging strategies are discussed. Lastly we discuss some practical problems associated with the oil cards with option.
Key Words:Option; Oil Cards; Refined oil; Hedging; Asian Option

Abstract:This paper uses the search volume data provided by Google trend to construct a direct measure of investor attention, based on which, we systematically explain three anomalies in financial markets with behavior finance theory. Compared with other factors, search volume does a better job in prediction of hot issue market, first day large return and long-run underperformance. The sole pre-IPO search volume can explain 23% of first day excess return and the sole pre-IPO search volume can explain more than 10% of long term communicated return. All the results are very significant. We also find 2009 reform of IPO reduces first day return.
Key Words:Investor Attention; Hot Issue Market; First Day Large Return; Long-run Underperformance; Behavior Finance