Factors Influencing Financial Investment of Chinese Middle-Income Families, Kunming, Yunnan

Abstract

This study aims to examine the relationship between demographic characteristics and various financial investment products and to explore the influence of risk preferences on financial investment decisions among middle-income families in Kunming. Data were collected using the convenience sampling approach, with a sample size of 400 determined by applying Cochran's formula. The statistics used to analyze the data included descriptive statistics, such as frequency, percentage, mean, and standard deviation, as well as inferential statistics, including the independent sample t- test, one-way ANOVA, and multiple regression, all at a statistical significance level of 0.05. The findings indicate that the age difference, total household assets, types of household debt, and household debt expenses significantly affect financial investment decisions differently. At the same time, gender and educational background do not have significantly different effects on the outcome. Risk preference significantly influences the choice of financial investments, with risk-averse investors having a negative impact on all investment types. In contrast, risk-seeking and risk-neutral investors exhibit positive influences. This study provides contemporary insights into how the post- pandemic era has reshaped financial decision-making processes, offering interpretations of risk preferences and financial investment recommendations for investors in Kunming.