Analysis Of The Impact Of China’s Real Estate Industry And Trend

Over the past decade, China’s economic growth at a staggering rate. However, in the past two years, real estate, as China’s economic pillar industry, began a downward trend. China’s housing bubble began to appear signs of fracture. In early January 2015, Kaisa Group Holding LTD, listed in Hong Kong stock exchange, declared bankruptcy. Hong Kong’s richest man Li Ka-shing announced restructuring Hutchison Whampoa and Cheung Kong Holding, and registered to the Cayman Islands, which caused a big stir. In the long run, China’s property has greater opportunity for appreciation. However, at least a long period in the future, the opportunity is much smaller than ever before and even has a larger risk system. As the engine of China’s economic growth and the pillar industry of national economy, the development and transformation of real estate in this macroeconomic environment obtains higher concerns from the general public.What Prime Minister Li Ke qiang put forward in 2015 Davos Forum was that Chinese economy enters a new normal now, from a rapid growth to high-speed growth. At the same time, he pointed out that Chinese economy will be still under the pressure of downturn this year. Nonetheless, China will continue to keep the strategic concentration, implement a proactive fiscal policy and prudent monetary policy, pay more attention to presetting and fine turning, implement directional control better, and ensure the economy operating in a reasonable range while improving the quality and efficiency.The development history of China’s real estate is short. But real estate and fixed investments contribute to national economy a lot. On the one hand, the national economy develops rapidly and sustainably. The improvement of residents’ disposable income and the speeding up of urbanization promote the rapid development of the real estate industry. On the other hand, the development of real estate also leads the development of other related industries, which plays a positive role in driving economic growth. However, there is no country in the world that develops real estate smoothly. It will bring negative influence to the development of real estate if the price is too intense or fluctuates frequently. It will also affect macroeconomic resources allocation, industrial policy and even the operation of the whole national economy. To study the impact which real estate bring to the economy and the development trend in future is the realistic need of China’s market economy.The real estate is an industry related to the people’s livelihood. This paper discusses the effect of real estate on macro economy by analyzing the related knowledge, indicates the relationship between real estate industry and macro economy, and researches China’s real estate industry concluding its effect on China’s economy and its development trend under the current macroeconomic environment by taking the case of Wanda Group.This article content is divided into five parts as follows :First, this paper analyses the basic concept of real estate. This chapter mainly concludes all kinds of basic concept of real estate, describes the development of real estate both in China and foreign countries, analyses the damage of real estate bubble bursting by reviewing the foreign cases. How to understand the real estate risk, draw lessons from overseas experience, real estate risk damage are all we need to seriously study.Second, through the analysis of the impact on macro economy, this paper expounds the relation between real estate and macro economy. it is necessary to realize that real estate industry brings both opportunities and challenges to national economy. How to make the most important economic pillar industry of China boost investment and consumption sustainably and stably is one important subject for us.Finally, this paper analyzes the present situation of Chinese macro economy and the development of real estate industry. At the same time, it puts forward the strategic policy of real estate industry to provide a reference for the real estate industry development strategies and countermeasures.To sum up, the real estate industry in China brings both opportunities and challenges to the national economy. Making real estate industry, the most important economic pillar of the in China, boost investment and consumption sustainably and stably will play a more important role in improving people’s living standards, promoting economic sustainable development, providing fund for urban construction.