| Since the reform of China housing system in1998, China’s real estate market has beenconstantly pushed forward. there have been colossal change in its mode of development,the scale of development as well as prospect of the real estate market. The prosperity ofthe real estate market has on the one hand, promoted the development of China’s economy,but on the other, given rise to lots of problems and potential crisis. Faced with the problemof continuing rapid rise of housing price, all departments of this country has beenstruggling in putting forward measures to get it in control, which has seen ceaselessincrease in both frequency and strength. However, the situation became awkward whenhousing prices went in the opposite direction with what government regulations weresupposed to lead. The issue of giving control to real estate prices while promoting themarket to develop in a stable and sustained way has been consistently addressed attentionto by the government as well as scholars as their research topic.This essay will focus on the financial factors though many other factors also playroles in influencing the real estate prices in China. Based on the current economic situationand real situation, the essay is supposed to do qualitatively and quantitatively analysisabout the influence factors on real estate prices of money supply, interest rate andexchange rate, together with other financial factors through referring theories of otherscholars. In the qualitative analysis, the essay put the theory and practice together foranalysis and research, concluded that the money supply, interest rate and exchange rateaffect the price of real estate through different paths in China. In quantitative analysis,using the classical method of time series data processing, the essay divides the financialfactors, which affect real estate price in China, into two level for empirical research.Finally, based on the qualitative and quantitative analysis of the above, the essay putsforward relevant proposals. |
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