Real Estate Bubbles And Banking Security

The real estate prices have been keeping rising in our country since 1999, but the rapid expand of the real estate market in large degrees is fueled by the large banking capital inflows. Credit to the building sector and the private sector has a increasing speed. Evidences from several other countries point out that a high exposure of banking to the real estate sector has much influence. In the meanwhile, the breakdown of the real estate bubbles will lead to the deterioration of the financial system frangibility.This paper try to analyze the correlation of the real estate and the finance industry in the macrocosmic and microcosmic perspective using the experience of Southeast Asia for reference. We make use of the analysis technology such as fixed effect of panel data,logit model,correlation analysis,co-integration analysis and put forward some suggestion on the soundness of the real estate and finance industry in china.The structure of this paper is as followed: the first part is the explanation of the bubbles'coming into being, the second part is the analysis of the real estate bubbles, the third part is the empirical study of the Southeast Asia crisis and test the correlation relationship between the banking and real estate operations,the fourth part is the study of the real estate market in our country,the last part draws the conclusion.