Abstract: Using the newly released data by the research team of Chinas Urban Household Consumer Finance， this paper explores the effect of health on Chinese urban household financial asset allocation. It has been found that such variables as health status， economy and demography may exert varied effects on the different types of urban household financial assets. Health deterioration tends to reduce the financial assets， especially the risk assets， which are held by urban households. The proportion of risk assets held in the east is higher compared to the central and western regions. A household in good condition has a 2%~3% higher probability of holding risk assets than the one in poor health. The effect of economy on financial asset holding is fundamental.

Key words: health, asset allocation, Tobit model, Biprobit model, quantile regression