China Real Estate Bubble, Risk And Management Of Housing Mortgage Loans

In 90's of last century, the price of our country's real estate had been in low position for several years. In new century, the price of real estate has jumped up. In some areas, there is huge gap between real estate value and its price. Some cities have suffered severity speculation. Although the policy to depress the price have been executed, but influence of high real estate will continue to impact the development of our economy.The wreckage of real estate bubble is that the development of our economy will be depressed, industry of finance will be damaged, real estate can not operation in stabilization, some real estate companies will suffer the economical loss. Especially, the damage and loss what can conduct to the industry that it relationship will cause more economical loss. The wreckage will strike the bank, first of all, real estate is in high debt, this will cause the risk shift to bank. Bad debt will be accumulated quickly, it will endanger the security of finance system. On the other hand, the consumer especially some speculators purchase in mortagage loan, if wreckage occur, the loaner do not has ability to pay bank. The scale of bad debt will be more enlarge. There are many examples that the wreckage of real estate bubble causes economical decline in history of world. Such as the economy of Japan has been stagnancy in long time. Hainan province had suffered economy stagnancy too.To avoid the wreckage of real estate bubble is to abstain demand of speculation and keep the balance of the supply and demand in real estate by efficiency government policy. It is necessary to maintenance logos price by propagandizing. To keep the security of bank, the strategy is needed, it includes forecast, dealing with problems in or arising from accident. Meanwhile it is needed to set up the risk control system.It is an important problem to avoid the wreckage of real estate bubble. This problem is need to solve by researcher, bank and government. This paper will study how to establish policy to control the risk of real estate when bank provides a loan. The main contents are that:...