Publication Type

Journal Article

Version

acceptedVersion

Publication Date

10-2023

Abstract

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.

Keywords

Digital finance, Digital wealth management, Financial inclusiveness, China

Discipline

Asian Studies | E-Commerce | Finance and Financial Management

Publication

China Economic Review

Volume

81

First Page

1

Last Page

18

ISSN

1043-951X

Identifier

10.1016/j.chieco.2023.102022

Publisher

Elsevier

Copyright Owner and License

Authors

Additional URL

https://doi.org/10.1016/j.chieco.2023.102022

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