The Influence Empirical Analysis Of Foreign Capital On China's Real Estate Price

Since 1991, China has been the country which attracts the most foreign investment all over the world in the last 16 years. Real estate industry has also been the second industry which attracts most foreign investment in China; the real estate foreign direct investment has far exceeded the growth rate of other industries. In recent years China's real estate prices are raising rapidly, especially in Beijing, Shanghai, Guangzhou and other economically developed cities, as well as some second-tier cities, the growth rate of real estate prices are even more alarming. Therefore, research on the inflow of foreign capital in China's real estate prices have some impact on forward-looking.The article describes the status of the foreign investment entering China's real estate industry and the main driving forces of the investment. The Government formulates different policies according to the specific circumstances. And analyzes about the prices of China's real estate, introduces the theory of the price of components and the analysis of the elements, discusses about the inside and external means of transmission of the real estate prices, and compares the prices and growth rate of China's domestic and non-residential.Using the data of the first quarter in 2002 to the first quarter in 2008,carry on the test measurement, analyzes the influence of foreign investment on China's domestic prices, the prices of non-residential as well as land prices. Through the Granger causality test of foreign investment in real estate and various price indicators, it shows that foreign investment plays a long-term promoting role to the residential and non-residential prices, rather than the domestic prices are the long-term reason to attract foreign capital to enter China's real estate market, land prices and no clear link between foreign investments.Based on theoretical analysis and empirical results, put forward policy recommendations on problems of real estate market and the control of foreign investment. In view of the foreign investment in China has some real estate speculation, should guide foreign investment in China's model of the development of appropriate regulatory measures.