Influence And Policy Research Of The Foreign Capital In China's Real Estate Market

As China's rapid economic development, house prices are rising, coupled with the impact of expected RMB revaluation , foreign capital has been flowing into China's real estate market. Since 1991, China has been the developing country which attracts the most foreign investments for 17 years. Real estate has become China's important area absorpting foreign capital, real estate has risen to be the second largest industry invested by foreigners.What implications will be caused in China's real estate market and real estate prices by foreign investments? What's the effectiveness of China's current policies of restrictions on foreign investment?This paper intends to start with the promulgation of "the limitations", analyse and compare the background of foreign restrictions on foreign investments in national real estate,analyse the influence of foreign capital in China's real estate market and the effectiveness of current policies through empirical research analysis and operation of the market. The thesis's organization is as following:In part one,firstly put forward the issue,secondly analyse the status of research at home and abroard, thirdly put forward my own theoretical framework with the study results of domestic and foreign experts and scholars.In part two, make empirical analysis.Firstly analyse the current status of foreign investments in China's real estate market,secondly make theoretical assumptions,thirdly make empirical analysis.Take unit root tests and Cointegration relationship analysis on three time series from 1999 to 2007: country's foreign exchange reserve (FER), housing sales price index (EPI) and land transactions price index (LPI), and then analyse the influence of foreign investments on China's house prices from a quantitative point of view.In part three,analyse the influence of the polices made by Governments on real estate market in China from a qualitive point of view , mainly from three areas: high-end property, the overall prices and second-hand market,and then analyse the reasons why "the limitations"failed.In part four,make some conclusions of the whole article, then make certain proposals in view of the issue in order to provide some reference for improving China's relevant policies.