China's Stock Market Development To Promote The Consumer Demand Studies

Along with the development of society and the reform of opening-up, China's stock market is an emerging market, but since the establishment of China securities market in 1990, china's stock market in the rapid speed is growing stronger, which has important influence on China's economic and social culture, etc. With the rising or falling of market share prices, many investors are therefore facing the change of their wealth, the stock market economic impact, therefore, has become increasingly prominent. More and more people are concerned about the effect of stock market to promot the need of consumption, and the effect of the stock market will be manifested through the influence on he consumption demand.Such mature markets in western world have proved the existence of the effect of wealth to the neen of consumption which has great influence on social economy.China's stock market is in an early stage of development,the research on the stock market is growing more and more.But with the development of Chinese stock market,which methods will the China's maturing stock market choose with the experience in the chrisis of Finance in 2008?What specific aspects will the direct and indirect effects have influence on? How is the effect? These are the emphasis in the paper.The Research on the stock market demand includes that the analyzing method is the regression method in the econometrics,etc.By use of analyzing the empirical correlations between the change of wealth and the consumption demand,we can go on the empirical correlations research.The consumption theory is the theoretical basis,the groundbreaking analysis in this field is Modigliani Ando's(1963)and the consumer behavior of family life cycle model.This paper bases on the consumer behavior of family life cycle model theory and consumption theory,and we analyze the effect of the development of the stock market to influence on the demand of consumption by two channels of effect.First,based on the development of domestic consumption theory and the research results from the comprehensive discussion wihic is about the basis of theory and the empirical research,this paper explore the role of consumer market using the method of combining the development of China's stock market.With the traditional theories,such as absolute income hypothesis,permanent income hypothesis and the life cycle theory,we analyze and study the factors which are affecting stock market wealth effect.Secondly,we can conclude the exsitence of the development of the direct and indirect effect channels and its influence by the empirical observation in the influence of Chinese stock market on the consumption demand with 1990-2009 data.Finally,we can combine the above theory,empirical results and practical analysis to analyze the influence factors on Chins's wealth effect to consumption market,such as the depth and the width of stock market,the quality of listed companies,the "effect of occupation"and the increase of kinds of Financial products etc, so that we can find out the ideas and countermeasures to perfect the problems.we hope that the policies, markets gradually perfecting and the expansion of the scale of China's stock market will develop greater wealth effect on long-term development of economy, expanding domestic demand of consumption and playing a more active role in the economy life.