A Study On The Formation Mechanism Of The Invisible Market Of Xiaochanquan House In Wuhan

Xiaochanquan House refers to the real estate developed on collective land in ruralareas and sold to other villagers groups or urban residents. In accordance with the LandManagement Law of the PRC and related administrative regulations after 1st January1999, the outward circulation of rural housing is illegal, thus Xiaochanquan House is notofficially recognized and protected by the law. In this thesis, the author defines themarket of outward circulation of rural housing as invisible market of XiaochanquanHouse.With the sharp increase in housing price, the number of urban resident whopurchases Xiaochanquan House substantially increases since 2005. both the centralgovernment and the government of Wuhan enact strictly regulations to prohibit the ruralresidents to buy rural houses after the wide spread of Xiaochanquan House, but invisiblemarket of it is still not absolutely extinct in Wuhan .Thus it is pretty meaningful of theresearch on the mechanism of Xiaochanquan House invisible market,which can identifythe inoculation environment and micro-dynamic of the market, and can lead to effectivemeasures to regulate the invisible market.As the initial stage of the recent research on Xiaochanquan House, the article firstlymakes some exploration and definition works on the basic issues of the invisible marketof the Xiaochanquan House, and analyzes the essence of it. Then introduces the currentsituation and forming ways of Xiaochanquan House in Wuhan; the fourth part of thepaper establishes the inoculation environment of invisible market in Wuhan. The fifthpart of this article analyses the micro-dynamic of both parties of invisible market ofXiaochanquan House and also makes a special analysis of the township government'srole in the formation of the invisible market of Xiaochanquan House. The main conclusions of this paper are these: invisible market of XiaochanquanHouse in Wuhan is a breakthrough of the current binary real estate markets between theurban and rural under the circumstance of insufficient ensuring housing supply and themarket failure of the real estate in Wuhan, and besides the fault of supervision on ruralhousing's construction and circulation, which is the direct entry into market of collectiveland in essence. This market not only improves the welfare of the city residents, but alsomakes the collective to acquire the potential benefits of the institutional change. Thetownship government makes a role of promoting the institutional change, and thus sharespart of the benefits.