A Study On The Influence To Real Estate Price From Excess Liquidity In China

Since China adopted the reform of the commodification of housing in 1998,thereal estate industry has become an important engine of China’s rapid economicdevelopment. However, in recent years, China’s real estate prices soaring all the wayto cause some security threats to our national economy. Meanwhile, Europe, theUnited States, Japan and other developed economies for a long time to implementloose monetary policy, resulting in a situation of excess global liquidity, China wasdeeply influenced by, in which the pressure of excess liquidity. Almost simultaneouslythe two phenomena, caused great concern of the author, the existence of a causalrelationship between China’s high prices and excess liquidity, has become the objectof this paper.First, we study the phenomenon of excess liquidity reasons, the currentdevelopment of China’s real estate, price formation, that the excess liquiditythroughout the real estate market in China, resulting in the liquidity of real estateprices situation .The proposed excess liquidity from a cost perspective, to push up realestate prices, driving real estate prices from the demand perspective, the perspectiveof the use of funds from the real estate industry chain system to enhance the role ofthe excess liquidity of real estate prices.Then, the use of empirical analysis is careful to verify, through the establishmentof the quantitative relationship between real estate prices and the broad money supply,foreign exchange reserves and savings and loan poor, confirming the previoushypothesis, That is, excess liquidity is the Granger cause real estate prices in China.At the same time have come to the real estate prices will lead to the conclusion of thebroad money supply growth. Also come to the conclusion of the real estate prices and the growth of broad money supply interaction.Finally, this paper reviews the policies adopted by China in recent years realestate prices rising too fast, and a brief analysis on the effects of policies. Promote thesustainable development of China’s real estate health policy recommendations at twolevels. On the one hand, the proposed regulation of real estate prices, new ideas, toregulate the real estate prices by adjusting the excess liquidity. On the other hand, thereal estate macro control policies and measures, including reform of the landtransaction system, and actively promote the real estate two-track reform, andrecommended that the protection of housing construction legislation.