Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/162498
Authors: 
Chen, Xiaoyu
Ji, Xiaohao
Year of Publication: 
2016
Series/Report no.: 
SFB 649 Discussion Paper 2016-056
Abstract: 
This is an empirical study on the effect of house price on stock-market participation and its depths based on unique China Household Finance Survey (CHFS) data in 2011 and 2013 including 36213 sample households. We mainly found that, with an increase of one thousand RMB per square meter in macro house price, the probability to participate in the stock market will increase by 5.4% before controlling for wealth effect and 2.84% afterwards, indicating the existence of wealth effect. The participation depths of the stock-total asset ratio is expected to decrease by 0.23% and absolute stock asset is observed to decrease by 5.8 thousand RMB in response to one thousand RMB increase of per square meter house price. The effect of house price on participation decision is also related to housing area, and the negative effect of house price on stock market participation depths gets more intense with the increase of the stock-total asset ratio.
Subjects: 
stock market
participation decision and depth
house price
China
CHFS data
JEL: 
D13
G11
R21
R32
Document Type: 
Working Paper

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