Stock Market Wealth Effect Of China

During the late 20~th ,there was a long term stock market boom with an increasing consumption in US . Theory suggests that there was stock market wealth effect that a stock market boom may increase consumption pressures. The drop in international stock prices, especially in US after early 2000 contribute to a slowdown in consumption or accelerate an existing slowdown which suggests that there is stock market negative wealth effect. So many people start to research the relationship of stock market and consumption, then the influence of stock market to macroeconomic, such as moneytary policy. We have created our stock market no longer before,but it is also important to know how about our stock market wealth effect. For, at least our research can give people a way to know the condition or problem of our stock market.The main logic structure of this thesis is:the concept of wealth and wealth effects, on which the analysis of wealth-effect-actiing-on-economy mechanism and its dissymmetric effects on economy are based. Then through a practical demonstration of our stock market regarding to the whole contury and Shanghai, in order to analyze the present condition of our stock market. This article also discusses some reasons that infect the wealth effect. This article, specially, also analyzed the reason of stock market' s slump, and why it deviates macroeconomic so far. At last, the thesis gives some policy advice expecting that our stock market can really create wealth for people.