Financial Asset Types Held by Households in France in 2007:

Compared to the USA, the French hold very low financial assets in stocks. The French consider the stock market to be risky and have traditionally saved for their retirement as opposed to investing. However compared to 1997 the French have increased their appetite for stocks in 2007.

Nearly 35% of households’ assets is held in life insurance.Similarly liquid assets and saving deposits also make a large percentage.

From the Banque de France report:

“Between 2003 and 2006, the value of households’ net assets grew by more
than 10% a year. However, the growth rate eased from 2007 owing to the
slowdown in housing and financial asset prices. There will probably be a
decline in 2008 (of around 3%) –the first in 30 years– because of the slide
in stock markets and the beginnings of a reversal in real estate.

In 30 years, household preferences in terms of financial investments have
changed in response to policies aimed at promoting the French financial
market, including tax incentives and employee savings schemes. Liquid
investments and fixed-term deposits (including home savings plans) were
largely preferred in 1978, with cash and cash equivalents making up 63%
of households’ financial assets, compared with 29% in 2007 (cf. Chart 4).
These savings have been supplemented by more or less risky long-term
investments, with life insurance now representing over one-third of total
financial investments. Households are now investing more in equity
and bond markets: the number of individuals holding securities rose
from 1 million in 1978 to 12 million in 2007, due to the appeal of sales of
shares in major public corporations. Securities portfolios accounted for
27% of households’ financial assets in 2007 compared with 10% in 1978
(although their share fell below 20% in 2008).”

Source: France’s national economic assets, 1978-2007: 30 years shaped by real estate and stock market capital gains