Study On Influence Of Chinese Interest Rate Policy Regulation On Real Estate Listed Companies Stock Price

As the main part of the financial market, the stock market plays a more and more important role in social capital allocation and resource allocation. As a means by which the monetary authority control economic in the stock market, the monetary policy will have extensive and far-reaching influence on the whole economy."To do a stock is to see rates face." This is the American stock operation master Paul McCain maxim. It shows that the change of interest rate can affect the stock market greatly.With China's real estate securitization deepens, real estate listed companies account for a larger proportion of the Shanghai and Shenzhen stock markets'value. As a result, they are playing the more and more major role in the market. The real estate listed companies are the bridge of the relation between the stock market and real estate markets. As a result, the price performance of real estate listed companies reflects the state of the economy of China's real estate.Therefore, the study of monetary policy, especially interest rate policy on real estate stock prices of listed companies has important theoretical and practical significance. This paper uses the event study to study how the interest rate policy influence the stock price of real estate listed companies in short term. Our sample is the daily data from January 1, 2006 to June 30, 2009. Our empirical results show that interest rate policy of real estate market can affect stock price of the company in short term, but the results may not consistent with theoretical analysis.We use VAR model to study how the interest rate policy influence the stock price of real estate listed companies in long term. Our sample is the monthly data from January, 2000 to June, 2009. Our empirical results show that, in the long term, interest rate changes will affect stock price of the real estate listed companies, but the influence is of a small degree.Finally, bring forward some policy suggestions according to the results of the research and analysis on real cases. Firstly, speed up the pace of interest rate liberalization; secondly, standardize and improve China's stock market; thirdly, break the segmentation between monetary market and capital market; finally, make better regulation of the country's financial system.