Impact On The Property Market, The Effectiveness Of Financial Innovation

In our time,Financial innovation is one of the most popular and most artistic topic, Peoplealways try to use the advantages of financial products to solve difficult problems in realsociety. Financial innovation in various fields, various ways,pushing our society toward moreefficiency.The United States is the first country in the world to launch futures contracts in the realestate market. The real estate market relates to many industries, complex structure, very easyto be influenced by external information. It is a bold and positive action to took the lead in theintroduction of futures contracts in the real estate market, Reaserch the changes in Americanreal estate market when the Future contract appear can provide us a better thinking to solvethe real estate market problem in our country.This paper mainly consists of three parts: the research background and theoreticalbasis,research methods, empirical research, conclusions and policy recommendations.Background analysis research in the first chapter tells us the United States launched a realestate price index futures is to hedge the real estate market bubble on the eve of subprimecrisis. giving the market a hedging instruments.It have some similarity.with the real estatemarket in our country. The second chapter analyzes the domestic and foreign present researchresults to all aspects about the real estate price index futures, foreign literature is far more thanthe domestic literature.Through the empirical study in chapter four and chapter five, we getbeneficial conclusion. Through GS model we derive the futures market can promote the realestate market price discovery function; Through the statistical analysis of historical data weconclude that the futures market can reduce the real estate market price fluctuations,it havethe positive effect on reducing the risk; Through the correlation test, ADF test and runs testwe discuss the effectiveness of the real estate market in different city, but unfortunately noneof that has strong persuasive conclusion.At last,in the end of the paper proposed some policyrecommendations to build real estate futures in china. The most important innovation is the research topic in itself.The domestic research on realestate price index futures is not enough in-depth study, discussion mostly only stay on thefeasibility and necessity. Quantitative research is very less;the second innovation is that weargue Future`s Price discover function is the performance of Market efficiency,and in theempirical study,we research them together to get the conclusion.