Using data from the 2010 China Family Panel Studies (CFPS), this paper analyzes the effects of political and market factors on the wealth accumulation of urban families in China. The results indicate that both political and market factors contribute significantly to wealth accumulation, with the former having larger effects on the accumulation of housing assets, while the latter being more influential on the accumulation of non-housing assets (including financial assets, durable consumer goods and productive fixed assets). Furthermore, political capital has greater effects on wealth than on income. Three explanations are proposed. First, families with political capital have benefited greatly from the privatization of public welfare housing. Second, families with political capital have lower household expenses and therefore accumulate more wealth thanks to benefits inside the system. Third, families with political capital may gain higher investment returns, thus converting their savings into wealth more effectively.