Empirical Study Between China's Banking Credit And Real Estate Price

At present, the real estate industry has become a pillar industry of China's national economy, it is also an important source to promote domestic economic to grow continuously. However, the unique characteristics of the real estate industry determine its development needs a lot of financial support. The support and promotion from the commercial banks has change simple corporation loans into two parts, on the one hand, it is the support to the development of the real estate, on the other hand, is the support to the housing consumption, the investment of the bank credit funds has become the main source of real estate funds. At the same time,As the condition that the bank loans are the most important financing channels, the bank loans have a significant impact on the volatility of the output and the macroeconomic through the impact on the real estate prices, and the influence will be strengthened day by day as the real estate market develops quickly and the proportion to the national economy rises. At the same time, due to bank credit plays an important role on real estate price fluctuations in the real economy mechanisms,a smaller external shock will enlarge the impact on output and expenditure, which will lead to significant fluctuations in economy, as well as increase the real estate credit risk, affect financial stability trough the interaction between real estate and bank credit. In recent years, China's real estate prices continue to climb, and the Initial bubble began to show, the real estate credit risk continue to accumulate, financial risk gradually expand. In this case, analysis the relations between the real estate prices and real estate credit theoretically and empirically has important theoretical and practical significance to prevent the real estate bubble and real estate credit risk.Based on descriptive analysis to China's real estate and real estate credit, this paper analyzes the interaction between the real estate prices and bank credit qualitatively and quantitatively. The empirical analysis shows that: real estate prices and real estate credit has a mutually reinforcing close relationship; lots of money into real estate industry increases the financial risk; there is a positive correlation between real estate prices and real estate credit risk; the direct impact on the rising prices is limited at the short time, it will mainly have impact on the real estate prices at a long time. At last the paper puts forward to the corresponding policy recommendations from four parts: the real estate restructuration, expanding financing channels for real estate companies, real estate credit structure adjustment, and strengthening real estate credit supervision.