The Research On Real-estate Financial Risk Of China

Nowadays, real-estate industry with high relevance with other industy has been the pillar industry to boost China’s national ecnomic, absorb employees and improve citizen’s living condition, which is growing with unprecedented rate. The real practice of foreign economic development has fully proved:as a capital-intensive industry, the exploitation and business operation of real-estate industry frequently complements promotes with the financing service provided by financial industry. Currently, China’s capital market is still not prosperous, financing demands of real-estate industry is mainly provided by banking system. As the banking credit loan supports the prosperity of China’s real-estate industry, the handsome risk is also accumulated, once the trend taking negative impacts on real-estate industry occurs, investors, developers of real-estate industry and banks should undertake different lever risk, especially banking industry providing fund support for real-estate industry, the break of fund chain also should motivate systematic financial crisis and harm fanancial security, even whole national economy. So it has important theoretical and practical significances to take systematic research on the performing modes and birthing mechanism of China’s current real-estate market and reveal the huge threats to China’s economic development brought by real-estate financial risk and pursue the countermeasures to control and diversify real-estate financial risk, also such research should benefit the health development of China’s real-estate market, fulfill citizens’housing consuming demands and keep the safety of financial system.This article is structured as follows:Firstly, it summarize and elaborate the real-estate finance theory in the current research. Then it introduce and explain the theory of real estate and related financial risk, especially on four version of the formation mechanism about real estate financial risk theory. Secondly, it analysis the status quo of China’s real estate market from three parts:the development of China’s real estate market, the main problems and the current level of foam test. Thirdly, this article conducte empirical analysis of China’s real estate financial risk and deep annlysis the formation mechanism of China’s real estate financial risk. Finally, for how to guard against financial risks of China’s real estate, it proposed to establish diversified financing channels, improve personal credit system, accelerate the banking system and strengthen management.