The Analysis Of Financial Regulation And Control Policy Of The Real Estate Market In China

As one of the important methods to regulate and control china real estate market, monetary policy is adopted through all the cycles of China real estate market since year 1998. As one of the pillar industries of the national economy, real estate industry not only promotes economic development and provides tax revenue, but also takes the significant responsibility to meet people’s needs. On the other hand, the real estate industry is quite cyclical, its trading volume and price are highly volatile, the real estate market is quite young, and the market mechanism needs to be further standardized and improved. Therefore, the Government must regulate and instruct the real estate industry via a variety of market measures, fiscal measures, and administrative means, in order to maintain the real estate industry healthy, glorious and stable.Among the various government regulatory policies, monetary policy is one of the most common and effective way. Also, on a going forward basis, monetary policy will still be an important way of regulating the real estate market. Therefore, this article includes the analysis and summary of historical development and regulation outcome of the monetary policy adopted during the real estate industry regulation since real estate marketization in year 1998, as well as the recommendations on the future monetary policy.We have found that monetary policy has effectively implemented the regulatory intention of the government, and preferably instructed the market development. Especially since the end of year 2007, the government has adopted a serial of monetary policy including the key policy "loan for second house", which has successfully regulated the development of real estate market, and consolidated the monetary policy as the nuclear policy of real estate regulation. Especially, we have found that the real interest rates and money supply significantly affect the price and trading volume of real estate. During the long-term development of China real estate market, monetary policy needs to further develop to continue playing an important role in the real estate regulation.