Empirical Study on How China’s Capital Market Innovation Affects Consumption Growth

China’s capital market development is a continuous innovation process. Distribution system of the stock market， as well as the diversification of stock products， the composition of market players and the market supervision system， etc. has been continuing to change. The article， first， theoretically analyzes capital market innovation’s effects on consumption mechanism. At the same time， it carries out the relevant and empirical tests， reaching the conclusion that for the community-based financing increases enterprise operation efficiency， workers’income and the purchasing power of urban households. But the residents will reduce consumer spending to increase investment in capital markets. In addition， stock price index rise has a significant impact on residents’current consumption. Therefore， it is important to have a correct understanding of the relationship between capital markets and real consumption. Also， we should reform income distribution policy and orderly introduce new securities and futures to improve social security system to effectively promote consumption growth.