The Empirical Research On The Influence Of Private Capital To Real Estate Price

Since the reform and open policy,the private capital stock is increasing.But in recent years Chinese economy has entered a new normal,the real economy is so sluggish.In order to obtain investment income,a lot of private capital outflows from the real economy and inflows real estate which has a strong rising expectation.At the same time,along with the implementation of the national macro-control policy of real estate,real estate industry is difficult to continue bank financing,the proportion of the private capital in the real estate financing rises.As everyone knows that real estate is a high risk industry,private capital provides financial support to real estate market,at the same time,Blindness,randomness,irregularity and information asymmetry of the civil finance market make the real estate contains great risks and cause financial turmoil.The private capital participate in real estate market is likely to induce private financing disputes,speculation,price bubble,default risk and have a series of social instability factors.This paper mainly studies the influence of private capital investment to the real estate price,first introduced the current situation of private capital investment in the real estate,then introduced the ways of private capital participating in the real estate,including real investment and real estate finance investment,that is from the side of housing purchase demand and supply side through into the real estate market.Then it empirically studied the influence of private capital to real estate price from the overall market,supply and demand point by vector error correction model,impulse response function,variance decomposition and Granger causality test.The results show that except for real estate price,private capital investment in the real estate market is the important reason causing price to rise,private capital investment in the real estate market has a positive effect on real estate prices,and the influence remains a long period.Finally,the paper puts forward some policy suggestions from the aspects of government regulation,restraining real estate speculation and building macro-prudential supervision.