RMB Exchange Rate And Real Estate Price Relations Research

In recent years, the RMB and the real estate rise in price is the hot topic which the domesticand foreign persons from all fields pay attention to. Along with the RMB appreciation pressureenlarging, domestic and foreign anticipation to the RMB appreciation is also more intense. From1994, our country started the exchange control organizational reform. Considering various aspects,our country gavemment started exchange reform from July 21, 2005. The new exchange systemtakes the market supply and demand as the foundation, refers to a basket currency to carry on theadjustment and fluctuates under management. Obviously, our country government's alreadyanticipated the RMB appreciation can have the significant influence to our country real estateprice, and started from at the beginning of 2005 to take a series of measures to strengthen to thereal estate industry macroeconomic regulation and control. Through each kind of channel,however, the overseas floating capital swarms into our country real estate industry as a result ofthe dual income from the RMB appreciation and real estate rise in price, which became theimportant impetus factor to our country real estate rise in price the recent years.In view of above realistic situation, we analysis intrinsic relations between the RMBappreciation and real estate rise in price from economic theory and economic model two aspects inthis article. Consequently, we get that the RMB appreciation can bring about the overseas floatingcapital through many kinds of effects to invest our country real estate industry, which can impelour real estate price to sky. So we conclude that what discuss above possibly produces real estatebubble just as Japanese and Taiwan. At final, we propose policies and measures suggestion tocontrol house; price and reform exchange rate.