Study On The Relationship Between Residents’ Property Income And Financial Asset Holdings

It is an important strategic target to improve the residents’income in our country.Chinese per capita disposable income is increasing year by year. As an important part of disposable income, Property income makes us to discover a new way to increase disposable income. Property income is derived from two aspects:one is financial assets, such as savings, bonds, stocks, insurance and so on. The other is non-financial assets, including real estate, vehicle and land. In the view of the development of financial market, more and more residents are participating in the financial markets to earn profits by holding one kind or more kinds of different financial products. Compared with the non-financial assets, the variety of financial product is more abundant, the form of yield is various and it has a huge potential for development. Out of the huge potential space of financial market, the government encourages residents to buy financial assets in order to increase property income. In fact, property income derived from financial assets is very considerable and in the proportion of disposable income is very big.First, this paper introduces the situation of financial market and the residents’ property income growth. Second, it studies the relationship between residents’ property income and financial asset holdings from theory and descriptive statistics. Third, we explore the correlation of financial assets and property income by the econometric methodology based on the macro view. In the part of empirical study, this paper explores total and incremental parts to discover whether there is a stable relationship between them for a long time. First of all, from the perspective of the total, the paper respectively determines the relationship between financial assets and property income from total financial assets and structure changes. It is concluded that:on the one hand, there is a positive correlation relationship between them. On the other hand, Savings and stocks are closely associated with property income, namely there is a stable correlation between them. But the savings is closer with property income than stocks. From the perspective of the increment, it is concluded that:for one thing, it has a long-term stable equilibrium relationship between financial assets increment and the property income increment. For another, Savings, stocks and bonds have long-term stable relationship with property income. At last, the paper analyzes the empirical results and gives some suggestions.