Household Asset Portfolios during the Covid-19 Pandemic

Abstract

In this paper, we investigate the determinants of household asset portfolios during the COVID-19 outbreak in China. Using an online longitudinal survey and focusing on a broad spectrum of assets, including stocks, gold, wealth management products, and houses, we show that more confirmed COVID-19 cases in a city led to both more upward and downward adjustments for all four types of assets. The results indicate potential divergent beliefs among the respondents during the pandemic. In addition, respondents were more likely to invest more in gold if they felt more anxious, whereas higher inflation expectation led to less investment in gold.