Empirical Studies On Stock Market Wealth Effect And Its Non-symmetry

In recent years, the size of stock market and the number of investors have increased in our country, the total market value has risen steadily, and the wealth effect of stock market has changed violently. Combining qualitative analysis and quantitative analysis with theoretical analysis and empirical analysis, the essay is based on the actual situation in China to study the stock market wealth effect on total retail sales of social, total retail sales of city social, tourism consumption, housing consumption and the non-symmetry of stock market wealth effect.In this paper, the stock market wealth effect associated with the consumption function theory, are introduced and then use the cointegration test, error correction model, using from January 1998 to December 2008 quarterly data, empirical analysis. Empirical results show that: the conclusions are as follows, from the long term, the stock market have had a positive wealth effect on the total retail sales of social, total retail sales of city social and tourism consumption,while a negative one on housing consumption.Among them, the total retail sales of city social have a greater impact than the total retail sales of social,and the influences on the tourism consumtion is most obviously. The Shanghai Composite Index rose 1 percent as a whole will lead to increase the total retail sales of social 0.0305%, 0.2056% increase in total retail sales of city social, travel expenses to increase 0.3478 percent, while housing consumer spending will fall by 0.0386%. From the short term, the ascent of index can promote various types of consumer spending. The fall of stock prices has a larger impact than the increase of it on tourism consumption.The negative effects produced by the decreased stock prices is larger than the positive one produced by the increased stock prices, while the positive influences produced by the increased stock prices is stronger than the negative one, which is produced by the decreased stock prices.Finally, the paper from the perspective of the stock market transmission mechanism is proposed to improve the way China's stock market wealth effect, which include the following five aspects, to expand the size of the stock market and ranks of investors, to improve the income distribution pattern to prevent the stock mardet over prosperity or constantly depression, to reduce the noise in the stock market and actively guide the expansion of domestic consumption.