A Study On The Financial Path Of Improving Chinese Residents’Property Income

In recent years, the quality of life of local residents have improved significantly and new changes have occurred in the level of their needs, along with the continuous progressing of China’s economy. The national income ultimately transforms to the residents’ disposable income after three distributions among the government, business sector and household sector. After fulfilling the basic survival and physiological needs, this money becomes huge amount of fund surplus in the hands of residents. How to transform this surplus fund into capital is a major issue currently faced by the Chinese economy. Finance, as the core of modern economy, has the function of circulating funds and optimizing resource allocation. Through financial mechanism, the financial needs of the production sector can be met on the one hand, and additional investment channels can be provided for the residents to preserve and increase the value of their wealth on the other hand. Finance is also the main path to gain income through property for Chinese residents.On the basis of the integration of the main streams of economics theory of property income, this paper studies the path to improve residential property income from a financial perspective using the general theory of financial supported economic. First, provides an overview of the content of the Chinese residential property income, summarizes the financial markets basis, financial policies and legal basis, financial concept basis and material basis of the income. Secondly, analyses the necessity and possibility to improve the Chinese residential property income from two aspects:the amount and structure. Thirdly, builds a VAR model using the selected vectors like highly associated savings of residential income, security used indicator and insurance used indicator. The empirical results indicate that the Chinese credit market shows a rather stable support for the property income and a decreased long-term contribution level, the securities market shows a rather small overall impact on property income and a large fluctuation level, the insurance market holds a rather small share but an expanding long-term trend, so that China should stabilize the credit market, regulate the securities market, and strengthen the role of the insurance market regarding the issue of property income. Finally, basing on the above analysis, this paper proposes countermeasures and suggestions according to the property income formation basis and empirical results, namely:make full use of the leading role of marketability financial support path and the coordinating role of policy financial support path.