A report released by a Shanghai-based institution recently studied men and women's different styles in managing finance by surveying more than 2,600 emerging affluent people in China, according to China Women's News.
Those respondents' annual incomes range between 125,000-1 million yuan in nine major cities.
The report found that men did not have an advantage over women in financial and investment decision-making.
The survey also indicated that there are differences between men and women in financial management, major issues of concern, and anxiety about future uncertainty.
In addition, male and female investors have different preferences in financial decision-making.
One of the report's findings is that women are more sensitive to risk than men. In terms of personal investment style, women also account for the majority of conservative-style investments.
The two genders adopt different strategies in financial decision-making, but these strategies have no significant impact on the final performance.
An analysis of securities investment behavior based on gender differences found no significant difference in total returns between male and female investors.
The results showed that men and women have the same ability to invest, no better or worse; and the investment style of both is different but complementary.
Moreover, the study found that women's need for money is not as high as men's.
When it comes to the liquid assets needed to reach the level of economic comfort, men needed about 2.4 million yuan, while women only needed 1.8 million yuan, the data showed.
The findings change the stereotype that women need higher savings to feel safe.
In the past, women focused more on family. But now, their sense of independence is awakening as more women were recruited for management positions.
A study on the effect of gender differentiation on corporate performances in Chinese listed companies' board of directors found that the increase of female executives is conducive to improving overall performance.
The report also found that women completed all of their financial goals slightly slower than men, and were slightly more anxious.
According to the data, men think it takes about 14.28 years to achieve their financial goals, compared with 15.41 years for women.
This anxiety may reflect the physical and psychological differences between the two genders.
Perhaps because of their anxiety, women are more open and professional about financial planning than men.
Trust in Professional Advisers
Although professional financial advisers can improve income stability and reduce the risk of principal loss, not everyone consults them when making financial plans.
In this regard, women are more open and respect professional opinions more than men.
Data from the report showed that women scored slightly higher than men on questionnaires about financial planning.
At the same time, statistics also indicated that women trusted professional financial advisers and financial companies more than men.
Due to physical and psychological characteristics, growing environment and other reasons, men and women have different concerns and characteristics in terms of consumption and financial management.
Overall, women are more risk-conscious and more conservative in their investment decisions, but that does not affect returns.
By Wu Fei, professor from Shanghai Advanced Institute of Finance in Shanghai Jiaotong University
(Source: China Women' News/Translated and edited by Women of China)
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