Household finance theory suggests that the health status of family members plays a great role in their financial asset allocation decisions. However,this has not been justified by empirical results based on micro data. The difficulty as well as controversy lies in that health status can be measured both subjectively and objectively,so the key is how it is measured. Besides,data used formerly primarily focused on the elderly so that the results are less representative since the effect of health shock on asset allocation is assumed to be different across different ages and wealth groups. This paper uses the proportion of medical costs in wealth per capital as the indicator for health. Using representative micro survey data of Chinese households,the paper finds that the effect of health shock on asset allocation is different across different ages and wealth groups. So,China should continue to improve and deepen the medical care insurance system,and treat the health problems of different of populations properly.