The inherent mechanism of the capital market boosting consumption is essentially to break through the two-way cycle of asset appreciation - income growth - consumption capacity enhancement and financing support - supply optimization - consumption willingness enhancement through the exertion of financial functions.
The impact of the capital market on consumption is achieved through multiple transmission mechanisms. From the perspective of theoretical logic, it can be divided into three major paths, which are demand-side transmission, supply-side transmission, and expectation transmission. The wealth effect on the demand side, financing support on the supply side, and confidence guidance on the expectation side influence each other, together forming the action chain of capital market - economic subject - consumption behavior.
The capital market has enormous potential and unique advantages in boosting consumption. It is necessary to adopt a series of targeted measures and optimize the relevant systems of the capital market. We should combine capital market reform with income distribution reform, social security system construction and so on, so as to meet the financing demand of consumer industries, effectively enhance residents' property income, and stimulate residents' consumption vitality.
In conclusion, we must fully leverage the role of the capital market in boosting consumption, clarify its transmission mechanism and practical path, effectively enhance residents' consumption capacity and potential, and promote sustained prosperity of the consumption market. We should support the enterprise development through consumption prosperity, enhance the sustainable development ability of enterprises, promote smooth economic circulation, and provide solid support for building a new development pattern and promoting the high-quality economic development in China.
