Research On Relation Of Bank Loan In China And Real Estate Price

Since the housing system reform of China on 1998, everyone has a house "become a dream of every Chinese people. residents of the housing system reform made rapid growth in housing demand, and promote the rapid development of the real estate market, also led the national economic growth. By analyzing real estate investment funds, we find that bank loan funds is the main source of funding. It can be said that, bank lending is the main driving force to promote the rapid development of the real estate market. While the real estate market is growing rapidly, the national real estate prices continued to rise, exceeding the capacity of the residents can buy. some scholars believe that real estate price bubble tendencies.There are indications that the real estate market is closely related to the financial support of bank loans. This paper studies the relationship between bank loans and real estate market, and analyzes the Influence of Bank loans to the rapid development of the real estate market. Using the quarterly data from 2001 to 2007,we can analyzes the relationship between bank loans and real estate price fluctuations. The econometric results show that, there is a positive correlation, which is also a Long-run equilibrium relationship, between Bank loan and house prices. Granger causality test showed that, Bank loan funds are the Granger reasons for price changes.The paper summarizes the impact of price fluctuations of real estate loans, and Lends activities on the proposed price for the countermeasures proposed regulation.