A Study Of Relationship Between Household Saving And Stock Market

Since the reformation of economy in China, household savings have been increasing greatly and continually. The rapid growth of household savings have supported the source of main capital to our economic development, however, over-high savings must come together with many negative impacts. The stock market is one of the important parts in modern financial market. Generally speaking, the main function of the stock market is finance and resource distribution. It has provided one kind of new investment channel to the inhabitant. On such situation, how to improve saving-investment transforming efficiency through stock market become very important in China. Embarks from our country truth, regarding the perfect our country financial system, the enhancement finance regulation ability, guides the inhabitant to deposit diverges has the very vital significance. We should analyze the relationship between household saving and stock market.Base on the above reason, this paper is composed of five parts. Firstly, relevant literature both in China and abroad are reviewed in this paper; And then not only the survey of household saving and stock market are analyzed synthetically, but also emphatically analyzed the high deposit not good to affect to the macroscopic economy; based on the theoretical analysis, current situation of saving-investment transforming is introduced. Combining the key of this paper, in part 4, we made the quantitative analysis of the affection between securities market and savings. We analysis the relationship between Chinese household savings and stock market through the method of Granger test and setting up the VAR mode between savings and stock trading volume. Above all analyses, there are some suggestions. Only to do so, can we divergence deposit and improve saving-investment transforming efficiency.The innovations of this paper are: Firstly, the angle of study is unique; a special industry is chosen to study the relationship between Chinese household savings and stock market. Secondly, data choice is innovative, using stock trading volume to represent the liquidity of stock market. Thirdly, the research method is innovative and the demonstration analysis and criterion analysis are combined.