The Effect Of Real Estate Empirical Studies Financial Regulation In China

Since the reform and opening up, China has been the rapid development ofreal estate. Meanwhile, with the rapid economic growth in real estate, real estateprices continue to hit a new high. High real estate prices to the general publichousing projects bring great harm, but also to build a harmonious society inChina.which has brought much impact. For the rapid growth of real estate prices,although the government has taken a series of financial control measures, theeffect of regulation is not very satisfactory. Therefore, It’s necessary for us toresearch the financial control policies on real estate: Whether financial controlpolicies have effect on real estate prices. Meaning that the financial control toolsimpact real estate prices, both from theoretical and empirical demonstrate.In this paper, at first, From fluctuations in the real estate cycle theory andmonetary policy transmission mechanism. to explore the need for regulation ofreal estate finance; secondly, in the view of China’s government-related financialcontrol measures, to analyze the current situation of China’s advanced real estatemarket; Then through the use of quarterly data2000-2011, the establishment ofprices as the dependent variable and the effective exchange rate, money supply,deposit reserve ratio, the loan interest rate from the variable VAR model, Toexplore the reasons for China’s housing prices continue to rise and control toolson the price effect of the impact of intensity and significance.Based on empirical results:1） China’s housing prices hit record highs inrecent years, the main motivation are excess money supply and high lendingrates.2) reserve ratio impacts less effect on house prices, but hasshort-term effect of a relatively significant.effective exchange rate impact onthe price effect is gradually weakened.3) In the long run. Interest rate, moneysupply and effective exchange rate make a positive role in China’s housingprices.but Deposit reserve ratio has a negative effect. Finally, Based onempirical analysis, We will take appropriate measures to control China’s moneysupply, interest rates and expected housing prices, in order to curb thecontinuing growth of China’s housing prices.