Shanghai And Shenzhen Stock Market Wealth Effect And Consumer Demand Research

Capital market play a remarkable effect in China's economic development,and the Shanghai and Shenzhen stock markets have been paid more attention because it can satisfy ordinary growing demand for investment. In the numerous of effects of stock market to economy and residents living, the wealth effect especially its impact on consumption demand study appears particularly outstanding.Here is this paper's clues:the wealth---the stock market wealth---the wealth effect of stock market, then the paper analysis the Shanghai and Shenzhen stock market with the consumption and the wealth effect. Specific for this is divided into six parts. The first chapter is introduction, this study introduces the background and meaning of stock market wealth effect, as well as the significance of the research about the stock market wealth effect in home and abroad; The second chapter introduces the related concepts and theories of wealth, and all kinds of town of family wealth is analyzed, and the proportion of family wealth in stock market have an important status in family wealth, this part help us understand the town family wealth distribution,at the same time it also illustrates the necessity of stock market wealth study. The third chapter introduce the concept of stock market wealth effect, and discusses the related consumption theory, this is useful for the empirical analysis in the fifth chapter;Chapter four theoretically analyzes transmission channels of Shanghai and Shenzhen stock market wealth effect on consumption; The fifth chapter is divided into two parts, the first part uses the cointegration theory to analyzes Shanghai and Shenzhen stock market wealth effect, the second part is about asymmetric verification on Shanghai and Shenzhen stock market wealth effect; The sixth chapter discusses the stock market wealth effect on monetary policy, regulation, and give positive suggestions in order to make Shanghai and Shenzhen stock market play a bigger role in the future.This may be the innovation in using the latest quarter of the stock market data to analyze wealth effect on analysis method using cointegration analysis, rather than the traditional regression analysis method, especially in the stock market wealth effect of asymmetry analysis, through the introduction of the virtual variable to avoid the performance of the whole stock market, all the improvement made the conclusion more close to reality, and has the stronger actual reference value.Through the study, the main conclusions are as followings:First, in the inhabitants of wealth, saving still has an absolute advantage, but the proportion of stocks is gradually rising, the stock market had gathered a large fortune, which has laid a solid foundation of funds for wealth effect. Changes in the stock market wealth have an effect on inhabitants income, tax revenue, the demand for money which means wealth effects affect the function is feasible.Second, after the empirical analysis, the wealth effect on Shanghai and Shenzhen stock market is not significant, the reason that basically has the following two points:one is the size of the stock market of our country is restricted, another is that the main market of participation is not high, which can be seen in two aspects, one is the number of people, especially the shareholding ratio of farmers is not satisfactory, on the other hand is due to social security fund, which still cannot reach the whole mechanism safeguard requirement, family wealth is main invested to defensive savings and investment proportion in the stock market is naturally not high.Third, the wealth effect exists asymmetry in our stock market. Declining in stock market have more effect on consumption than the stock price rising. At least it illustrates two problems:one is the stock market is still in the stage, extrusion effect is obviously, in the stock market investor will have many reasons to give up increasing current consumption, only when the social development to a certain stage, people's wealth has get a certain strength, they will increase consumption; Second is the stock market is still not a perfect system itself, small investors in the stock market bear the main loss, which is often greater than they gained. The main interests are concentrated in institutional investors and high income stratum, but the increasing wealth for them do not have too big effect on consume. Fourth, this paper analyzes the interaction of wealth effect and the monetary policy,on one hand,we believe monetary policy's transmission efficiency in the stock market is effected by the wealth effect, on the other hand, the stock market wealth effect will produce large uncertainties on monetary policy formulation and implementation. So when we take on macro monetary policy stock prices should be as a means of regulating monetary policy or goal. But based on present situation, wealth effect is not significant, monetary policy should at least be sufficient attention on stock prices,and consider it as an auxiliary means is feasible.In current wealth effect on stock market is not significant, the reason is various, but we will always believe that with the continuous improvement of the economic system, reform of non-tradable shares, and the ability of residents' consumption increasing gradually, wealth effect on China's stock market will be more apparent, and its contribution on consumption and economic growth will become more and more prominent.