The Status Quo And Infection Of Foreign Capital In Chinese Real Estate Market And Empirical Research

As economic globalization become a world economic trends, capital flow is also breaking the regional and national restrictions, a growing number of countries have begun to make use of foreign capital. Because of its sustained and rapid development,China has become the most attractive developing countries for foreign investors. Since the reform and opening up, the actual amount of foreign investment in China increased steadily, FDI growth rate has maintained a high level in most of the years.The real estate market has become one of the main areas of foreign investment due to its high-margin, broad development prospects, and fewer policy restrictions. Foreign capital enters into the the Chinese market mainly through four forms: establish foreign real estate enterprises, set up real estate investment funds, debt and other non-FDI forms and non-resident institutions and individuals etc. Access of foreign investors can facilitate real estate development, accelerate the real estate market competition, promote the real estate industry to upgrade on the one hand,But on the other hand, they also increased the competition of the real estate market, made the supply structure of the real estate market irrational, affected the state's macro-control policies, increased the potential risks associated with real estate financial system. Therefore, the study on how to deal with the double impact of the foreign investment on Chinese real estate industry has become hot issues.This paper started from theory, analysed the reason, the approach and its affection of foreign investment in Chinese real estate market. On the basis of relevant literature home and abroad,this paper studied the relation of FDI and Chinese real estate growth, empirical results show that the long-term equilibrium exists between foreign investors in real estate investment and real estate growth, but the long-term elasticity of growth of FDI in real estate is only 0.08. This shows that at the present stage the development of FDI in promoting the Chinese real estate industry is not significant, local enterprises are the main force to promote the rapid development of Chinese real estate industry. Therefore, on the introduction of real estate FDI, we should pay attention to develop the advantages of foreign-funded enterprises in technology and management, namely, foreign-funded enterprise's "spillover effect". Chinese real estate development enterprises can learn of advanced experience from foreign-invested enterprises in its design, construction, development and other areas. In addition, our government should introduce relevant policies and regulations, strengthen supervision of real estate funds; establish and improve the real estate market information systems and early warning forecast system; improve financial mechanisms to accelerate the expansion pace of the domestic real estate financing channels, thus promote a stable and healthy development of Chinese real estate industry.