Study On China Real Estate Industry With S-C-P And Government Regulation

Recently, China’s GDP continues to improve. The real estate industry makes a lotof contribution to China’s GDP increase. At the same time, the real estate industry is oneof the important sources of China’s fiscal revenue, and has a strong affinity and a directimpact on the upstream and downstream enterprisesdevelopment. Pulling effect onemployment of real estate industry is also obvious. It can be said that the real estate isan industry about the social development, therefore, the deep understanding of the realestate market is conducive to the development of the whole society.Considering the characteristic of the real estate industry itself, this paper arguesthat the real estate market itself does not have much practical significance without thethe government regulation. In order to study the SCP theory of the real estate industry inour country,we must make a research on government regulation.To further understandthe effect of government policy，this paper studies the government controls on the realestate market both in supply and demand. This article makes the impulse responseanalysis and variance decomposition to house prices and investment.The consequencesof government intervention often influences the enterprise behavior directly, rather thanthe market structure. Therefore, this article studies S-C-P of the real estate industrythrough researching the real estate market behavior, market structure andperformance.Small and medium-sized real estate enterprises in China withdrew from the real estate market due to government pressure,and large, powerful took the opportunity of enterprise mergers and acquisitions of small and medium enterprises.So the government’s regulation to real estate market will not directly lead to the change of market structure. Therefore,We study the current situation of Market behavior, market structure andmarket performance in the real estate market. Finally, we research concentration–profitratio hypothesis using the panel data in EVIEWS6.0. Research results show that Government regulation of the real estate market m&aeffect is remarkable，In recent years, m&a has a massive increase in the market of ourcountry，But our market is still a competitive market structure，has not form a monopoly.Profit margins in the market in China is lower as a whole, Not profiteering industry. Butin recent years the market profit margins does have a increase trend.Concentration-profitability relationship is not the same in each area. The results for the government’sbiggest enlightenment is that the government’s control measures are effective, But theeffect is different. In general, As long as reasonable curb house prices, excessiveinvestment or speculative problem will be solved. At the same time,31areas in Chinaare completely different, Government policy should suit the remedy to the case.