Study on the Influence of Stock Market Development on Household Consumption Expenditure: An Empirical Analysis Based on Chinese Data

Understanding the factors influencing Chinas economic structure, particularly its stable and constant consumption rate, is crucial. This paper employs a univariate linear regression model based on National Bureau of Statistics (NBS) data from 1992 to 2023 to examine the impact of stock market development on household consumption expenditure. The study also uses the number of domestic listed companies to conduct robustness tests and further analyzes heterogeneity from the perspectives of different time periods, stock types, and consumption types. The results are as follows: 1. Stock market development is positively correlated with household consumption expenditure. 2. After the financial crisis, the positive impact of stock market development on consumer spending increased. 3. B shares have a more significant influence on consumer spending. 4. Stock market development has the highest effect on consumption in the transportation and communication sectors, followed by healthcare, and relatively little impact on the consumption of food, tobacco, and alcohol. These findings suggest that stock market development significantly affects household consumption expenditure, primarily due to the growth in the B share market, the 2008 financial crisis, and increased consumer spending on transportation and communications