The Empirical Analysis Of The Real Estate Stock Price Fluctuations

Financing is directly related to the future progress of real estate developers. So how to pool funds is the issue which must be taken into account by most of the developers. However, there are very few sources of financing for the developers; a comparatively ideal way to the funds pooling of the real estate firms is through share market. Based on the Stat. from Sohu Stock, there are about 68 real estate public companies in China, with 27 in Shenzhen Stock Exchange, and 41 in Shanghai Stock Exchange. Most of real estate companies solute the problem of insufficient capital by going public.It has been proved by the past researches that the stock market is a window on a country's economics and that the fluctuation of stock prices is a reflection of its economic changes, sometimes the former being ahead of and greater than the latter. Meanwhile, the trend and fluctuation of stock prices can indicate the operations, operating profits and health of a company, hence the great importance of research on the stock prices of public real estate companies. For the company, the research on its stock prices can help it know its operations and management; for the investor, it is connected to the confidence in the company; for the government, the fluctuation of the stock prices can indicate the social and economic significance of the enactment of the new policies. So it is of great necessity to analyze the trend and fluctuation of the stock prices of real estate public companies.Due to the guiding principles of the traditional economy and some problems unfolding in the economic transitional period,real estate stock market shows great complexity, with great unpredictability in its price fluctuation and even greater unpredictability in the factors affecting the fluctuation.Based on the data of Shanghai market's real estate stocks of "Yahoo Financial" plate from January 4, 2000 to December 30, 2005, the paper firstly uses statistical research methods, analyzing daily closing price Index, monthly averaged closing price Index, quarterly averaged closing price Index and annual averaged closing price of real estate stocks and forging an objective description the fluctuations characteristic in China's real estate stock price. Furthermore, the paper analyzes the...