The Beijing Real Estate Financial Market Risk Research

In the late1980s, the real estate industry of China entered the initial developmentstage. With the reform of the real estate and the improvement of people’s living standards,the real estate has gradually become one of the leading industries in national economydevelopment from1998, and the investment of2011is seven times of1998.But there arespecial phenomenon, such as the sharp increase of the housing price, excessive competitionand credit risk. When the finance crisis occurred we realized that there are huge financerisks during the real estate development.As one of the fastest growing cities in China, the real estate market of Beijing hasundergone significant fluctuations over the past five years, not only the land reservation,Housing Construction but also the personal housing mortgage loans reflects the real estatefinancial market risk. Therefore, it is meaningful to analyze the real estate and financemarket.This essay consists of five chapters. Chapter one is the introduction, which illustratesthe background, significances and methods, summarizes the research contents andoutcomes of the domestic and foreign scholars and experts on real estate financial marketrisk. In chapter two, the author first defines the concepts and features of real estate financemarket and risks, and then analyzes the sources of real estate finance risks from thetheoretical level. Chapter three first reviews the situation of Beijing’s real estate industry,including the purchase and exploration of the land, the supply and demand of the house.Then this part focus on the four risks, they are housing buyers, real estate developmententerprises, financial institutions and government regulations. In chapter four, we couldlearn the experiences of establishing the real estate finance market of America and Japan.At last the essay proposes the idea and five recommendations.