Research On Financial Policy Control And The Development Of Real Estate Market In China

Thanks to the open reform, Chinese real estate market developed quickly, and the real-estate industry has become the pillar industry, which enormously impelled economic growth. At the same time, the price of housing market rise excessively, surpassing the bearing capacity of the ordinary buyer; the housing market operation is not standard, and the real-estate transaction is disorder, which have seriously affected sustainable development of the real-estate industry. In order to solve these prominent problems, relevant departments have adopted some regulatory policies one after another, Though the raising price-trend of the housing is controlled through the monetary policy used by Government, the controlled price of housing isn't the expectation of government. This situation initiates us to ponder the deep-rooted cause of the poor effect, and how should we improve the control of the real-estate market. The paper research that Government use monetary policy to control real-estate market, it's in order to make the real-estate market healthy. Estate is a special kind of commodity, which is firmly related to national development and people's life. Every government is intended to protect the whole industry to grow in a healthy way, as well as reside its demos well. So the regulation and control from government to the real-estate industry is required. There is a natural relationship between finance and real-estate. Because the financial support to real-estate can affect both the supply side and the demand side of real-estate, it naturally becomes a way to actualize the government regulation and control. Especially it is very important in protecting the industry from bubbles.In fact, many countries use financial regulation and control in the real estate industry under different economic condition, in different way. The validity of the regulation and control police depends on the government's finance condition, the time to perform it, the methods to practice it, the strength to do it, etc.By Studying the process of financial control and the development of real-estate, the paper first analyzes the principle that financial policy control real-estate market in theory, then through the view of the development of Chinese real-estate market, explain the connotation and characteristic of real-estate market, the development course of Chinese real-estate market, running mechanism and existed problems of current real-estate market. Then based on the analysis of the impact of monetary-control policies on the housing market, the paper introduces the financial policy and effort on real-estate market since 2003, empirically analyze the influence of controlling real-estate market through interest and money supplying. Next the paper analyzes the occurred questions about controlling real-estate market. Then the article summarizes the experience and lesson about the financial policy and effort of America, Japan and Hong Kong. Finally this article presents the optimization recommendations.