The Financial Analysis Of The Construction Of China's Housing Guarantee System

The paper analyzes the construction of housing guarantee system in China with the theoretical base of housing filtering model and reference of U.S. experiences. Before the housing reform in 1998, welfare housing system is dominating China's real estate market. Since then, the housing guarantee system is gradually transforming to a market-oriented mechanism. However, the benefit of this reform is still not as notable as it is supposed to. To solve the problem, the construction of financing channels of both suppliers and consumers are of great significance. The three-stage development of the housing guarantee system in United States provides valuable experience and lessons for China. From the supply-path to demand-path and even the current crisis would be worthy to be studied. According to the housing filtering model, real estate market can be divided into three groups according to the quality and function of the houses, high level, middle level and low level and each sub-market is closely interrelated. Therefore, the government intervention to the low level market should take the impact on the other two markets into consideration as well. The housing filtering model also indicates that the demand-path for the housing guarantee system is more efficient than the supply path. With the guidance of housing filtering model and the U.S. example, the suggestions proposed in the fourth part of the paper are individualized according to the development level of real estate market in each city group. As the paper analyzes the problem from a financial angle, the suggestions are raised mainly in the aspect of financing channel as well.