From The U.s. Subprime Mortgage Crisis, China's Real Estate Financial Risk Prevention

In April 2007, the United State's second-largest subprime mortgage lenders-New Century Financial filed for bankruptcy protection, causing panic on Wall Street, the U.S. sub-prime mortgage crisis. Since then, the sub-prime crisis intensified, causing great turmoil in global financial markets, hedge funds were forced liquidation, many commercial banks, world-renowned financial institutions, huge losses have occurred, or even bankruptcy, the global stock market. The crisis spread rapidly from the financial market shocks to the real economy, leading to a global economic crisis. In recent years, as China's rapid economic development, real estate and real estate financial markets are booming. At the same time, real estate finance in the risk inherent in increasing the development of their health, poses a major threat. The sub-prime crisis broke out, provides us with an opportunity to learn from. Through the analysis of sub-prime crisis, allows us to derive a lot of inspiration are conducive to better carry out the work of real estate financial risk prevention to ensure that China's real estate and financial stability and healthy development.In this paper, the theoretical basis of knowledge of financial risks, first, data analysis and theoretical analysis through a combination of methods, the U.S. sub-prime mortgage crisis, an analysis of the evolution of the situation, and describes the sub-prime crisis in the U.S. economy, the Chinese economy and the world economy brought about by to the profound influence, on this basis, the detailed analysis of the outbreak of the U.S. sub-prime crisis. Secondly, China's real estate credit market on the current situation and existing problems are discussed, revealing the existence of a number of risks. Finally, the combination of the U.S. sub-prime crisis, brought about a profound lesson on how to further guard against financial risks in China's real estate make their own policy proposals that should focus on macro-control policies, real estate, financial innovations, real estate credit market stability and financial supervision, etc. to work.