Asset Wealth Effect Of China’s Urban Residents Empirical Analysis

Consumption, investment and export are regarded as “three wagons” to promoteeconomic development. In the finical crises of2008, the export of China faced a hardtime and was often held back by other countries or regions. As for investment inrecent years, the side effects of investment overheat is getting visible. Therefore, thesignificance of consumption’s improving role in economic growth is increasinglyobvious. On the one hand, the increase of consumption can push economy forward.On the other hand, the increase of consumption itself is the most important way toimprove the quality of life for residents and share the benefits of reform andopening-up. In2003, the GDP per capita in China has already reached1000$. Theproportion of properties in residents’ wealth is getting higher. Regarding the methodsto increase consumption, the role of income is self-evident. However, the impacts ofproperties over consumption are yet to be discussed and concluded. This issuedeserves our concern especially in China where researches on the impacts of wealthare at initial phase and researches conducted vary from one another in the conclusions.Moreover, research methods employed are mostly overall research, which try toexplore the comprehensive situation of impacts of properties on residents’ wealth.This overall research seldom involves and pays attention to regional difference. Underthese circumstances, this research will conduct empirical analyses througheconometric model to study the impacts of properties on Chinese residents’ wealth aswell as regional differences.This research has collected different kinds of data concerning city residents’ income,consumption and properties, both national and regional. On the basis of the datacollected, time series models panel data models have been established to analyze theoverall situation of the impacts of residents’ properties on their wealth and regionaldifference. Time series models enable us to find out that Chinese city residents’ equityportfolio’s impacts on properties is weak, and the increase of stock values exerts nosignificant positive influence on consumption improving. Panel data models haveproved us that equity portfolio’s impacts is only obvious in Ningxia and Yunnan.What’s more, it exerts negative influence in that region. While real estates in mostregions have showed obvious positive impacts. These regions include Beijing, Fujian,Guangdong, Guizhou, Heibei, Henan, Hubei, Jiangsu, Jiangxi, Qinghai, Shangdong,Shanxi, Shananxi, Shanghai, Sichun, Tianjin, Zhejiang and Chongqing. In differentregions, the impacts of real estates show structural differences. In relatively developed areas, real estates’ impacts are obvious while in backward regions, they are not thatobvious.Finally, this research conducted analysis on the models and brought forward someproposals.