Digital wealth management and consumption: Micro evidence from individual investments
With the rapid advancement of digital finance in China, accessing wealth management services through digital platforms has become considerably convenient. However, the potential impact of digital platform investments on residents' consumption remains a relatively unexplored question. This study...
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2023
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sg-smu-ink.lkcsb_research-82582023-09-06T10:23:13Z Digital wealth management and consumption: Micro evidence from individual investments GONG, Qian BAN, Mingyuan YU, Yunjun WANG, Luying YUAN, Yan With the rapid advancement of digital finance in China, accessing wealth management services through digital platforms has become considerably convenient. However, the potential impact of digital platform investments on residents' consumption remains a relatively unexplored question. This study addresses this gap by leveraging a unique dataset obtained from one of China's largest fintech companies, encompassing individual-level data on consumption and investment. Our findings indicate that engaging in digital platform investments can indeed stimulate residents' consumption. Importantly, participation in digital platform investment has an inclusive effect, with a more pronounced marginal impact on consumption among low-income residents and in-dividuals residing in finance-underdeveloped cities. Additionally, the positive influence of digital platform investment on consumption primarily stems from two channels, the wealth effect resulting from investment returns and from investment diversification in a diverse range of wealth management products. The wealth effect is more pronounced among low-risk investments when risk diversification is limited, while more pronounced among high-risk investments when the portfolio is diversified. 2023-10-01T07:00:00Z text application/pdf https://ink.library.smu.edu.sg/lkcsb_research/7259 info:doi/10.1016/j.chieco.2023.102022 https://ink.library.smu.edu.sg/context/lkcsb_research/article/8258/viewcontent/DigitalWealthManagement_2023_av.pdf http://creativecommons.org/licenses/by-nc-nd/4.0/ Research Collection Lee Kong Chian School Of Business eng Institutional Knowledge at Singapore Management University Digital finance Digital wealth management Financial inclusiveness China Asian Studies E-Commerce Finance and Financial Management |
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Digital finance Digital wealth management Financial inclusiveness China Asian Studies E-Commerce Finance and Financial Management GONG, Qian BAN, Mingyuan YU, Yunjun WANG, Luying YUAN, Yan Digital wealth management and consumption: Micro evidence from individual investments |
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With the rapid advancement of digital finance in China, accessing wealth management services through digital platforms has become considerably convenient. However, the potential impact of digital platform investments on residents' consumption remains a relatively unexplored question. This study addresses this gap by leveraging a unique dataset obtained from one of China's largest fintech companies, encompassing individual-level data on consumption and investment. Our findings indicate that engaging in digital platform investments can indeed stimulate residents' consumption. Importantly, participation in digital platform investment has an inclusive effect, with a more pronounced marginal impact on consumption among low-income residents and in-dividuals residing in finance-underdeveloped cities. Additionally, the positive influence of digital platform investment on consumption primarily stems from two channels, the wealth effect resulting from investment returns and from investment diversification in a diverse range of wealth management products. The wealth effect is more pronounced among low-risk investments when risk diversification is limited, while more pronounced among high-risk investments when the portfolio is diversified. |
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text |
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GONG, Qian BAN, Mingyuan YU, Yunjun WANG, Luying YUAN, Yan |
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GONG, Qian BAN, Mingyuan YU, Yunjun WANG, Luying YUAN, Yan |
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GONG, Qian |
title |
Digital wealth management and consumption: Micro evidence from individual investments |
title_short |
Digital wealth management and consumption: Micro evidence from individual investments |
title_full |
Digital wealth management and consumption: Micro evidence from individual investments |
title_fullStr |
Digital wealth management and consumption: Micro evidence from individual investments |
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Digital wealth management and consumption: Micro evidence from individual investments |
title_sort |
digital wealth management and consumption: micro evidence from individual investments |
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Institutional Knowledge at Singapore Management University |
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2023 |
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https://ink.library.smu.edu.sg/lkcsb_research/7259 https://ink.library.smu.edu.sg/context/lkcsb_research/article/8258/viewcontent/DigitalWealthManagement_2023_av.pdf |
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