China's Real Estate Prices And Stock Prices Interaction Studies

In recent years the stock market and real estate markets have emerged in dramatic fluctuations, especially the stock market in 2007 experienced a skyrocketing and the same of real estate prices, the stock market in 2008 with the housing market is continuing to decline, therefore the study of relationship of the Chinese real estate prices and stock prices has important practical significance.Around the world, about the real estate prices and stock prices regardless of the interaction between research are theory and methods, or empirical studies, are not very sophisticated in the study of the experiences and achievements of our predecessors, this first of all through the unit root test, Granger causality test, cointegration, etc. The Empirical Analysis was to test exist of interaction of the real estate prices and stock price, and select the city to further validate their typical interaction, then study the interaction between stock prices and what is the distribution of our country from the eastern, central and western three types of areas, also from the population size to give analysis, and separately estimate the areas of different sizes city model ,and then city clustering studies; further come to the real estate price and the stock price on the interaction between the regional differences, then give the final outcome.This paper is based on the law of real estate economics, drawing on financial theory, regional economics, investment in science, measurement and so the real estate market research methods, the country's real estate market and the stock market has held quantify, using charts and empirical analysis of the relationship between the existence, as well as how the kind of relationship.In this paper, the main conclusions and innovation: (1) to explore both the relevance of price volatility that real estate prices and stock prices there is an obvious correlation between and demonstrate the relevance , and trying to explain. (2) through a combination of theory and empirical methods developed in real estate prices and stock prices interaction mechanisms. (3) This paper is only based on economic fundamentals of our city, focusing on residential city merchandise prices and stock prices interaction at the regional differences to a systematic summary of the relationship between the real estate market and the stock market up at the regional differences. Although the stock prices of some of the city play a small role in real estate prices, but our country through the study of real estate prices and stock prices interaction of a larger regional differences.