An Study On The Relationship Between The Consumer Finance And The Demand Of Urban Residents In China

As an important research field of finance and economic, consumer finance is the product and service of financial institutions aiming to meet consumer demand. And its essence is the financial resources which means to satisfy the consumer demand. Consumer finance is steadily developing with a high rate based on the financial development theory and consumption function theory. Because our society is undergoing transformation of economic structure and economic development patterns. The consuming, the powerful means and effective ways could promoting economic growth, plays a more critical role in the whole national economy than ever before. The structure of consumption is the comprehensive reflection of consumption of the quality of residents’ consumption, consumption level and status. Under current world economic situation, the development of consuming finance contributes to shifting our country economy from investment-oriented to consumption-oriented and enhancing consumer pull function on the economic development, which is beneficial to complete the economic growth mode transformation and economic sustainable development.This article is based on financial development theory and consumption function theory, which analyzes the China’s consumer finance development situation and the present situation of urban residents’ consumption. Its a in-depth research about the impact of our consumer finance on the mechanism of urban resident consumption demand. Also, it gives a detailed analysis of the consumption function theory in the concrete application of urban residents’ consumption behavior in our country. Through a demand analysis of the transmission mechanism for consumer finance, the paper has studied the inner mechanism, using empirical study with the help of related model, from three different dimensions—the consumer credit, non-cash payment, risk management and financial assets respectively. In this theory, the development of consumer financial has promoting effect on China urban residents’ consumption. However, whether this effect really exists need to use the empirical method to verify validation in our country. In this paper, the empirical data mainly comes from China statistical yearbook, China’s financial yearbook, China’s urban life yearbook with the price, China price and balance of urban household survey yearbook and China bureau of statistics database and so on. In addition, this paper uses the software of Eviews6.0 for empirical analysis. By consuming financial development—an empirical study of impact on consumption demand of urban residents of our country, it profoundly defines and illustrates the concept and basic connotation of consumer finance, further observing the influence factors of consumer finance, and revealing the development of consumer finance of urban residents’ consumption demand analysis of the mechanism,path and the effect more accurately in our country. Results shows that the perfect consumer credit,as the important influence factor of the consumption demand of urban residents in our country, can drive the urban residents’ consumption in China. Apart from that,other factors which affects consumer finance demand for urban residents’ consumption also have important influence.