Effects Of Stock Investment On Property Income Growth

At present, stock has been one of Chinese residents' main assets. Individual accounts in stock exchange are more than a hundred million, and the China's shares were even worth more than its GDP in 2007. Stock investment is supposed to be a prime source of property income. In favor of residents' income diversification, stock investment can increase residents' property income, reflecting the concept that the fruits of reform and development should be shared by all people. Increasing residents' assets can expand consumer demand and transform the pattern of economic growth, to realize continuous and stable economic growth.However, due to high offering price, P/E and low cash bonus in China stock exchange, the rate of stock investment return is low. Furthermore.Volatile and drastic fluctuation, long bear market and short bull market and low market efficiency in China stock exchange causes relatively higher market risk factor, which further reduces rate of stock investment return and weakens the contribution of stock investment to residents' property income. Empirical researches indicate that rate of stock investment and cash bonus is not obviously interrelated with residents' property income and consumption of durable products.To make stock investment be prime resource of resident's property income, develop investment in stock exchange and diversify risk, we should expand scale, definite investment function of stock exchange, improve issue mechanism of stock exchange, optimize structure of invest subject, as well as reinforce governance mechanism of issue subject and invest subject.