A Study Of Differences In Share Price Sensitivity Of Real Estate Firms With Different Financing Preferences To Regulatory Policies

With the rapid development of China’s socialist market economy and the continuous optimization of the relevant system policies of the real estate industry,China’s real estate enterprises have been able to broaden their financing channels,and their stocks are increasingly favored by various types of capital.However,the real estate industry has also emerged in the process of development,such as the rapid growth of housing prices,speculation and other problems,because of its capital-intensive industry characteristics,making its development status and the stability of the national financial system is deeply linked,its financing issues have also become the focus of attention of the state and investors.In order to promote the healthy development of the real estate industry,the government has introduced a series of policies to regulate the real estate industry,and whether these regulatory policies significantly affect the stock prices of real estate companies and what differences in the sensitivity of their stock prices to regulatory policies are caused by the financing preferences of real estate companies become the subject of this paper.This paper collates the financial regulation policies introduced in China since 2014 for the national real estate market,and selects the stock prices of real estate firms before and after the introduction of the regulation policies as the research object,and adopts the event study method to empirically investigate the impact of different nature of regulation policies on the stock market performance of real estate firms,and focuses on the "three red lines On the basis of the impact of real estate regulation policies represented by the "three red lines"on real estate enterprises,we further investigate the path and strength of the differential impact of endogenous financing preferences and exogenous financing preferences on the stock price sensitivity of real estate enterprises through multiple regression analysis.The empirical results show that the relaxed property regulation policy brings positive returns to the share prices of real estate firms and lasts for a period of time,while the tightened property regulation policy does not necessarily bring negative effects to the share prices of real estate firms due to the existence of investor expectations and other factors.From the perspective of financing preference,the share prices of real estate firms that prefer exogenous financing are more sensitive to policy shocks after the release of tightening property regulation policies,and the abnormal share price returns are significantly and negatively related to the ratio of exogenous financing.The paper concludes with countermeasure suggestions from the perspectives of real estate firms themselves,government and investors based on the above research findings.