Infection Of The Foreign Capital In Chinese Real Estate Market And Empirical Research

China has been the country which attracts the most foreign investment over all over the world in the last 15 years. Real estate industry has also been the second industry which attracts most foreign investment in China. This article is focus on the relationship between the foreign investment and the development of Chinese real estate industry and then analyse the infection of the foreign investment to Chinese real estate industry, hoping to provide some advice in regulating those foreign investment.With the study methodology of combining the microanalysis and macro analysis jointly and binding the positive analysis and the normative analysis together, this article researches on both of the channel and the motivation of those foreign investment into Chinese real estate market and estimate the total number of the foreign investment in Chinese real estate market, paying great effort in researching the passive infection in terms of the price of real estate, exchange rate of RMB and the stability of the financial system. Using VAR function on Shanghai real estate market which is a sample of the whole Chinese real estate market, this article reaches a conclusion that foreign investment did not play an active role in Chinese real estate market.Finally, this article adds some case study about the same situation in Thailand during the Asia financial crisis in order to provide some useful advice to help us to arrange those foreign investments rationally,...