Risks Of Real Estate In China And Countermeasures

Excess investment might lead to speculation, and various causes in real world tend to make people invest more money than they should, which as a result may bring about some unsound impacts on economy and social lives. Possibility of excess real estate investment leading to collapse of economy can not be ignored which is warned by Southeast Asia finance crisis. Much more attention has all the time been paid to real estate industry owning to its nature of practicability and investment, of which the former is embodied by that it meets one of basic needs which are"clothing, eating, housing and traveling", the latter is shown by stable value and increment, with the development of economy and trade, differential rental effect as well as function of investment grow stronger and more vividly.Those who are very eager to develop their economy, especially countries newly adopting market economy, attach more importance to real estate industry, which has already become one of most significant ways to encourage spending and enhance whole economy with great contribution to civilize housing quality. Its attributions make housing investment one of few most ideal outlets for extra money particularly during inflation period. High rewards and low technology requirements of real estate industry attract huge surplus capital from other industries. Under the cooperative effect of this two forces, real estate develops very fast, as a result its supporting finance and banking balance grows overwhelmingly, negative factors among fields of economy, politics, institution and culture contribute vigorously to further severity of real estate finance risk.The thesis takes financial risks of real estate as a research object, adopting demonstration and criterion methods both, which firstly introduces basic conceptions, causes and impacts of these risks, and several relatively mature theories formulating financial crisis, then moves on to analysis status quo and current problems of real estate industry and its supporting financial system respectively, based on aforesaid theories and facts, the thesis stresses on anglicizing the causes which could make financial risks of real estate grow severer, then after briefly referring to practices in this field, it concludes with countermeasures on cracking down finance risks in standpoints of macro-regulation, banking institution and environment construction. It hopes to be a tool to encourage more researches on this topic and owning to poor capability of author as well as insufficient data, inaccuracies and shortcomings are unavoidable which need to be pointed out by readers of all levels.