The Study On The Influence Of Short-term Capital Flow Exerting On The Domestic Real Estate Market

With the advance of globalization, the international short-term capital flow has been expanding its scope and looking for various speculative opportunities. The international short-term capital flow, which is profit-driven and speculative, will damage the global economy, especially developing countries with respect to their real estate market, capital market, exchange rate regulations, monetary policies as well as the economic development. In particular, the Mexico’s financial crisis and Asian financial crisis are both related to the international short-term capital flow.In recent years, China’s economy has maintained a steadily increasing trend. Our economy has recovered very fast even after the sub-prime mortgage crisis. On the account of the high growth rate, the sustaining international trade surplus, the expectation of RMB appreciation, and relatively stable politics, China is the best option for the international short-term capital. Even though the capital account is controlled, the international short-term capital still flow into our country through varies underground channels.Based on the above background, with relevant knowledge of finance, this article aims to analyze the influence of short-term capital flow exerting over the real estate market in China both theoretically and empirically. There are three advantages here:first, this article focuses on the definition and the scale of different measurement methods of international short-term capital flow. Furthermore, it emphasizes the empirically analysis on the influence of short-term capital flow on the real estate market. The last but not the least, this article implements the combination of qualitative and quantitative methods.This article includes the following five parts:the first section generally reviews the background and significance of international short-term capital flow. Besides, it also introduces the framework of the article. Section two studies the brief situation of the international short-term capital flow in our country. Section three reviews the existing calculation method of short-terms capital flow, and analyzes the differences of four methods. Section four is the core contents, which empirically analyzes the influence the international short-term capital flow exerts over the real estate market. Finally, some policy suggestion is recommended for our real estate companies and our government.