A Study On Financial Support Mechanism For Increasing Chinese Rural Residents’ Property Income

In October 2007, the report of the 17th national congress puts forward a point that our country need to create conditions to let more people own property income, since then, residents’ property income has received a great deal of attention. Property income is an important part of residents’income structure, but in our country, both for urban and rural residents, property income still occupies a low proportion of disposable income, showing that property income has not been one of the important sources of residents’ income. At present, the development of rural financial system is still at the early stage in our country, under the situation, if a powerful financial support mechanism is established to guarantee the improvement of rural residents’ property income, consumption of rural residents will be stimulated, which is good for transforming the economic development pattern of our country; the widening gap between rich and poor will be effectively narrowed, which is good for social justice; rural residents can also share the economic development achievements created by reform and opening up, which is good for conducting a harmonious socialist society.Rural residents can get property income in various ways, taking part in marketing activities or financial activities, and they would better get financial support on many kinds of aspects, so it is necessary to study financial support mechanism for increasing rural residents’ property income. In the first, the article analyses the various factors affecting rural residents’property income, after that, the article focus the analysis on the positive effects brought by financial development on rural residents’property income, and the basic elements of the current financial support mechanism, after elaborating the theory of financial development and the related theory that describes the relationship between financial development and rural residents’ property income, then the article establishes a VAR model between the rural financial development and the rural residents’ property income, in order to finding that the rural financial development scale, financial efficiency and financial structure are the granger reasons of residents’ property income through the empirical study, in a words, financial development would affect the acquisition and increase of residents’ property income. At last, the article puts forward corresponding suggestions on improvement of financial support mechanism. Having been in the early stage of rural financial development, our country should strengthen the education about social security mechanism for rural residents and financial knowledge, should adjust the market supervision mode and folk financial supervision methods, and should set up tax and financial policies which are suitable for rural areas, only in these ways, can rural financial markets be developed comprehensively, and can rural residents be stimulated to actively obtain property income. At the same time, rural financial institutions should positively improve the structure of their own development, positively improve the ability of converting savings into capital and innovating, and should do their best to provide comprehensive financial services for rural residents to obtain property income.