A Discussion About The Problem Of Real Estate Bubble And The Financial Security In China

It's well known that Real Estate as an important industry in most country plays a prominent role in the economic development. It is a capital densely industry and have close relationships with the finance industry. The Real Estate finance is a significant support and guarantee that cannot be substitute for the Real Estate development. To some extent Real Estate is kind of periodic consumption and always under unstable fluctuation, so in many countries it is under the regulation and control from government. And the affection of administration is always considered to be one important guideline of policy measurable system.Real Estate industry in our country passes through fast development of five yeas and then macroeconomic regulation and control of two yeas, the market and the estate enterprise's overall host objective environment must be good original to the market anticipated Enters 2007. Even more the capital market recovers day by day, the currency system enters the revaluation cycle, and the economy of our country under healthy fast development. In 2007 the finance will comprehensively open, Guarding against the bubbles of Real Estate and the risk of Real Estate finance is not only the request of healthy development for the Real Estate industry and the Real Estate finance Industry, but also the need of social and economical stabilization and development.While the process of urbanization and housing system reform are deepening, some industrial policies and credit policies have been carried out to support the development of real estate industry. Along with the rapid growth of this industry and the durative rising price, the price issue has become a focus of current economic development process. Real estate bubble is a theoretical issue and also a practical one. Over last 20 years during which the real estate industry in China developed, the real estate bubble in 1992 and 1993 was very impressive and aroused the wide concern by economists and pubic at large. It is most meaningful to the health of the economy and risk avoidance that we have a right understanding of real estate bubble. The aim of my dissertation is to research the real estate bubble and the security of finance.The structure of the thesis is as follows:Chapter 1 introduces research background and the topic significance, limits the elementary theory and the concept.In Chapter 2 , First of all, the dissertation gives a short explanation of the cause of the real estate bubble.Then, Chapter 3 analyses the factors of financial stabilization.Chapter 4 launches the analysis of the Real estate Bubble to the financial stabilization, discusses the bubble's harmful influences to the security of the finance, and the mechanism of the influence.Chapter 5 analyses the situation in China. At last, on the reality and the base of the experience of foreign country and history, comes out the solvable methods and valuable advises on how to build early warning system, prevent the real estate bubble and take care of the financial system security financial system.The thesis applies normative and contradistinctive methods, for one thing, gives a short explanation of the cause of the real estate bubble and the factors of financial stabilization, etc. For another, launches the contradistinctive analysis of the Real estate Bubble to the financial stabilization. Data,diagram and sketch are all used for the explanation of the essay.The innovation of the paper is the systematical elaboration on the effecting mechanism of Real estate Bubble to the financial stabilization. There is a lack of conditions, we can't get enough the latest data to trace the development of house marketing, which is one of the shortcomings of the essay.