The Influences And Measures Of The Foreign Capital Flowing Into The Real Estate Industry In China

With the continuous economic growth and the acceleration of the urbanization process in China, in addition the influence of various factors such as the RMB appreciation and the financial environment of international real estate market, the Chinese real estate industry, which characterized by more extended investment scale and the investment area expanding to rear line cities, has increasingly became a preferential area of international capital investment. At the same time, the price of the real estate in China has continuously risen; the real estate market has appeared an overheated indication. Under this circumstance, to investigate the influences of the international capital permeating the real estate industry in our country has become a hot spot and difficult issue within the area of financial management.However, because our country has a vast territory and different regional peculiarities, the impact and pros and cons of the international capital inflow on Chinese real estate also vary considerably. Therefore, while analyzing the macroscopic impact of the international capital inflow on Chinese economy, we choose Jingzhou, Hubei, a regional level underdeveloped city in central China as a microcosmic model, in order to probe not only the general question but also specific issues. The purpose of this paper is to answer the following questions: what kind of influence, both macroscopic and microcosmic, of national capital inflow on Chinese economy; the degree of this influence; how to cope with it; if we should apply different strategies; what kind of the strategies, etc.In view of this, the paper firstly discussed some relative basic concept on the flow of international capital and then elaborated the channels and methods of the international capital inflow. We also dissected the main reasons of the international capital inflow through the method of empirical study and standard analyze. Finally, by introducing the model of price determination,choosing Jingzhou city in as a microcosmic model and gathering relative data, we objectively evaluate the pros and cons of the international capital inflow on Chinese real estate and put forward the detailed suggestion and solution, in order to provide the references for government's decision and help the market to make rational investment.