China Stock Market Prices And The Real Estate Market Price Linkage Of Research

The stock market and real estate market occupies a pivotal position in the nationaleconomy. China’s capital market，the stock market is an integral part of,but also a barometer ofthe national economy, meanwhile， is known as the status of the pillar industries of real estatecan not be ignored, it will directly affect the rise and fall of a few tens of a huge industry, playsa strong industrial linkage effects, driving along the upstream and downstream industries, suchas iron and steel industry, cement industry, glass industry, household appliances, etc., affect thesituation as a whole plays a role in the country ’s GDP contribution to the vast ratio. The status ofthe stock market and real estate market is so important, but there are some relationships betweenthem, interact with each other.The stock market and real estate market attracted the attention of scholars and research, is ahot issue of academic research. Previous scholars mainly made from bank credit, money supply,the total national economic development, interest rates and other aspects of the real estatemarket, respectively, and stock market-related research, or setting up the model to measure thereal estate bubble economy. In fact, there is some link between the real estate market and thestock market, changes in the market will cause a change in another market. Research real estatemarket and the stock market, research from the price relationship between the two is moreappropriate to start with, on the one hand because of the price of the two markets is very simpleand easy access to the information obtained, simple and intuitive, on the other hand, the pricecovers information is very rich. For example the price fully reflects the state of the market supplyand demand, but also market boom boom or weathervane. Therefore, this study focuses on thelinkage between the two markets price above. So what kind of relationship exists between realestate and stock markets, the price linkage mechanism is how, what is the theory behind how toanalyze the linkage between the two pathways, which is an attempt to explain the content of thisarticle is the purpose of this study.This article will use the qualitative and quantitative analysis to study the relationshipbetween the two ways the real estate market prices and the stock market pricemovements,combing the context of the real estate market since1998and the stock market pricechanges,price linkage mechanism between the two studies, trying to depth analysis of therelationship between two deep changes in market prices mechanism. Specific practices, the firstuse of micro and macro theory of price changes on the relationship between the two marketsmake theoretical explanation, and then use the econometric model empirical research, VARmodel and impulse response on the use of time-series analysis, Granger causality empirical model to analyze the relationship between the angle of the real estate market and the stockmarket price movements. Finally, the establishment of multi-variable VAR model to study thetransmission mechanism of asset price fluctuations bank lending rate and the loan amount, themoney supply as a variable.Major research paper are as follows(1) interconnected between the stock market and real estate market. Establish VAR modeland impulse response model to analyze the correlation between the presence of internal. In1998and2013, the stock market is Granger cause real estate. And the stock market and real estatemarket in the long term there is cointegration, there is a stable equilibrium relationship.(2) the stock market and real estate market fluctuations in the price transmissionmechanism. Wealth effect and credit mechanisms to promote the stock market prices and realestate prices in the same direction as the movement of the reasons, and assets under alternativeasset portfolio theory have resulted in a negative direction of movement of the real estate marketand the stock market. Macroeconomic factors such as interest rates, money supply and bankcredit, the impact of inflation on the price of the stock market and real estate prices is morecomplex, can not simply be Introduction. Generally speaking, when China’s economicprosperity in the upward phase of the economic cycle, lower interest rates, bank credit is arelaxed environment, to increase the money supply and moderate inflation, so that the totaldemand in the economy increases, stock prices and real estate prices Meanwhile rise. When ourcountry is in a recession phase, rising interest rates, bank credit tightening, reduce the moneysupply, then the price of China’s stock market and real estate market prices are likely to fall atthe same time.