Government's Financial Regulation And Control On The Real Estate Market

This paper focuses on the government's regulation and control towards the real estate finance, which keeps the healthy growth of the whole real estate market. Real estate is a special kind of commodity, which is firmly related to national development and people's life. Theoretical and empirical evidences show that the real estate market is of low-efficiency, instability and distribution unfairness. The low-efficiency is caused by the market failures like incomplete competition, information asymmetry and externalness. Every government is intended to protect the whole industry to grow in a healthy way, as well as reside its demos well. So the regulation and control from government to the real estate industry is required. There is a natural relationship between finance and real estate. Because the financial support to real estate can affect both the supply side and the demand side of real estate, it naturally becomes a way to actualize the government regulation and control. Especially it is very important in protecting the industry from bubbles.In fact, many countries use financial regulation and control in the real estate industry under different economic condition, in different way. The validity of the regulation and control police depends on the government's finance condition, the time to perform it, the methods to practise it, the strength to do it, and the transmitting efficiency of it, etc.In the late several years, Chinese government gradually improves its regulation and control system on financial support to real estate, but the expect target still cannot be achieved. So it is necessary to improve the effectiveness of the regulation and control on real estate finance by constituting a pre-admonition system of real estate market, consummating the land transferring system, enhancing the bank supervision system and establishing the government assuring system for the real estate loan.