Report on the Development of Household Finance in Rural China (2014) (eBook)

Li Gan is the professor of Economics and Cornerstone Fellow of the College of Liberal Arts, Texas A&M University and also the director of Survey and Research Center for China Household Finance, Southwestern University of Finance and Economics, Chengdu, China.  

Contents 5
1 Basic Condition of Rural Households 9
1.1 Survey Design 9
1.1.1 A Brief Introduction to the Survey 9
1.1.2 The Sampling Process 10
1.1.2.1 Sampling Summary 10
1.1.2.2 Specific Operations 12
1.1.3 Data Collection 13
1.1.3.1 Introduction to the CAPI and CATI Operating Systems 13
1.1.3.2 Interviewer Selection and Training 14
1.1.4 Refusal Rate 15
1.1.4.1 Distribution of the Refusal Rate 15
1.1.4.2 How the Refusal Rate Compares Longitudinally 17
1.2 Data Quality Control 18
1.2.1 Process of Controlling the Quality of the Interviews 18
1.2.1.1 Strict Management of the Samples 18
1.2.1.2 Details of the Interview Management System 19
1.2.1.3 Timely Return of Data 19
1.2.2 Data Inspection 19
1.3 Household Demographics 20
1.3.1 Household Composition 20
1.3.2 Gender Structure 20
1.3.3 Age Structure 23
1.3.4 Educational Background 24
1.3.5 Marital Status 29
2 Rural Household Employment 32
2.1 Working Population 32
2.2 Employment Categories 34
2.3 Employment Type 35
2.4 Employment Distribution 36
2.5 Employment Industries 37
2.6 Categories of Household Occupations 38
3 Rural Household Incomes 40
3.1 Income Overview 40
3.1.1 Overall Income of Rural Households 40
3.1.2 Income Sources of Rural Households 42
3.2 Agricultural Income 43
3.3 Non-agricultural Income 44
3.3.1 Income from Wages and Salaries 44
3.3.2 Business Income 45
3.3.3 Income from Properties 47
3.3.4 Transfer Income 48
3.4 Income Disparity 50
4 Expenditures of Rural Households 53
4.1 Agricultural Production Expenditures 53
4.2 Consumption Expenditures 54
4.2.1 Overview of Consumption Expenditures 54
4.2.2 Consumption Expenditures and Income 55
4.2.3 Regional Disparities in Consumption Expenditures 57
4.3 Transfer Expenditures 58
4.3.1 Overview of Transfer Expenditures 58
4.3.2 Regional Disparities in Transfer Expenditures 60
5 Rural Household Properties 64
5.1 Rural Household Assets 64
5.1.1 Overview of Rural Household Assets 64
5.1.2 The Structure of Rural Household Assets 65
5.1.2.1 Financial Assets and Non-financial Assets 65
5.1.2.2 Non-financial Assets 66
5.1.2.3 Financial Assets 66
5.1.3 The Value of Real Estate and Agricultural Machinery of Rural Households 68
5.1.3.1 Real Estate 68
5.1.3.2 Agricultural Machinery 69
5.2 Rural Household Debts 70
5.2.1 Overview of Rural Household Debts 71
5.2.2 The Structure of Rural Households Debts 71
5.3 Net Assets of Rural Households 73
5.4 Wealth Disparity of Rural Households 74
6 Current Development Status of the Rural Financial Market 76
6.1 Risk Market 76
6.1.1 Overview of Household Participation in the Risk Market 76
6.1.2 Comparison of Household Participation in All Kinds of Risk Markets 77
6.2 Credit Market 78
6.2.1 Loans Market 78
6.2.1.1 General Situation of Household Participation in Loans Market 78
6.2.1.2 Loans of Households 79
6.2.1.3 Households’ Mortgage Loans 80
6.2.2 Private Lending Market 81
6.3 Finance and Household Consumption 82
6.3.1 Payment of Household Consumption 82
6.3.1.1 Comparison of Different Payments 82
6.3.1.2 Non-cash Payment for Household Consumption 83
6.3.2 Credit Card Payment for Household Consumption 84
6.3.3 Household Online Shopping 85
6.3.3.1 Participation of Households in Online Shopping 85
6.3.3.2 Selection of Online Shopping Payment 86
6.3.3.3 Distribution of Internet Banking 86
6.4 Household Financial Services and Selection of Bank of Deposit 87
6.4.1 Financial Services 87
6.4.2 Households’ Reasons for Choosing Banks of Deposit 88
7 Rural Households’ Formal Credit Demand and Availability 90
7.1 Formal Credit Demand 90
7.1.1 Definition of Formal Credit Demand 90
7.1.2 Analysis of Formal Credit Demand 91
7.1.2.1 Analysis of Total Formal Credit Demand 91
7.1.2.2 Analysis of Agricultural Production Credit Demand 91
7.1.2.3 Analysis of Business Operation Credit Demand 92
7.1.2.4 Analysis of Housing Credit Demand 92
7.1.2.5 Analysis of Automobile Credit Demand 92
7.1.2.6 Analysis of Credit Card Demand 93
7.1.3 Factor Analysis of Formal Credit Demand 93
7.1.3.1 Factor Analysis of Agricultural Production Credit Demand 93
7.1.3.2 Factor Analysis of Business Operation Credit Demand 95
7.1.3.3 Factor Analysis of Housing Credit Demand 97
7.1.3.4 Factor Analysis of Credit Card Demand 98
7.2 Formal Credit Availability 99
7.2.1 Construction of Formal Credit Availability Index 99
7.2.2 Analysis of Formal Credit Availability 101
7.2.2.1 Analysis of the General Index of Formal Credit Availability 101
7.2.2.2 Analysis of Agricultural Production Credit Availability 102
7.2.2.3 Analysis of Business Operation Credit Availability 102
7.2.2.4 Analysis of Housing Credit Availability 102
7.2.2.5 Analysis of Automobile Credit Availability 103
7.2.2.6 Analysis of Credit Card Availability 103
7.2.3 Factor Analysis of Formal Credit Availability 103
7.2.3.1 Factor Analysis of Agricultural Production Credit Availability 103
7.2.3.2 Factor Analysis of Industrial and Business Operation Credit Availability 105
7.2.3.3 Factor Analysis of Housing Credit Availability 106
7.2.3.4 Analysis of Factors Affecting Automobile Credit Availability 107
7.2.3.5 Analysis of Factors Affecting Credit Card Availability 108
7.2.4 How Improving the Secondary Market for Rural Land Mortgage Influences on Household Credit Availability 109
7.2.4.1 Influences on Agricultural Production Credit Availability by Rural Land Mortgage 109
7.2.4.2 Influences on Industrial and Business Operation Credit Availability by Rural Land Mortgage 110
7.2.4.3 Influences on Housing Credit Availability by Rural Land Mortgage 110
7.2.5 Inclusive Finance and Credit Availability 110
8 Financial Risks of Rural Households 112
8.1 Overview for Financial Risks 112
8.1.1 Debt Burden for Rural Households 112
8.1.2 Definition and Measurements of Household Financial Risks 113
8.1.3 Household Financial Risk Level 114
8.1.4 Characteristics of High-Financial Risk Households 115
8.2 Debt Risk Index 118
8.2.1 Definition of Debt Risk Index 118
8.2.2 The Construction of the Debt Risk Index 118
8.2.3 Debt Risk Index Level 119
8.3 Financial Risk of Different Households 119
8.3.1 Household Income and Financial Risk 119
8.3.2 Age Structure and Financial Risk 120
8.3.3 Education Background and Financial Risk 121
9 Rural Households’ Private Lending 122
9.1 Participation Rate in Private Lending 122
9.2 Scale of Private Lending 123
9.3 Sources of Private Lending 124
9.4 Purposes of Private Lending 125
10 Financial Knowledge of Rural Households 126
10.1 Integral Level of Financial Knowledge 127
10.1.1 Answers to Financial Knowledge Questions 127
10.1.1.1 Question on Interest and Calculation Abilities 127
10.1.1.2 Question on Inflation 128
10.1.1.3 Question on Financial Market Risks 128
10.1.1.4 Question on Attention to Economy and Finance 129
10.1.2 The Construction of the Financial Knowledge Index 130
10.1.2.1 Factor Analysis 130
10.1.2.2 Calculating Factor Scores 131
10.1.3 Financial Literacy 132
10.1.3.1 Overall Household Financial Literacy 132
10.1.3.2 The Gap Between Urban Households and Rural Households in China in Terms of Financial Literacy 134
10.1.3.3 Regional Discrepancies in Household Financial Literacy in China 136
10.2 The Distribution of Financial Literacy 136
10.2.1 The Relationship Between Educational Level and Financial Literacy 136
10.2.2 The Relationship Between Age and Financial Literacy 138
10.2.3 The Relationship Between Gender and Financial Literacy 138
10.3 The Relationship Between Financial Literacy and Household Financial Behaviors 140
10.3.1 Influence on Participation in Financial Market 140
10.3.2 Impact on Risky Asset Allocation 141
10.3.3 Impact on Household Credit Behavior 141
10.3.4 Impact on Household Consumption 143
10.3.4.1 Impact on Household Payment Methods 143
10.3.4.2 Impact on Household Online Shopping 144