Research On The Effect Of The Monetary Policy On The Real Estate Companies

Since1998, China’s real estate market-oriented reforms. The real estate industryhas become a pillar industry to promote China’s economic development.The housingprice fluctuations on the macroeconomic impact are also more obvious. With the realestate economy in the growing importance of the national economy, the real estatemarket regulation is also much attention.Especially in recent years, high prices led toa series of economic and social problems, but also caused the government andacademic attention.China’s real estate industry is a typical capital-intensive industry, with capitaldemand and heavy reliance on external financing characteristics. In this paper, therelevant literature is reviewed and summarized based on the real estate market.According to China’s own characteristics, we study the monetary policy for China’sreal estate business economic activity, and analyz the capital structure and allocativeefficiency of credit resources of listed real estate companies in the micro-level toexplore monetary policy in the real estate market regulation effect.To explore the effect of monetary policy in the real estate market, we first build acapital structure dynamical adjustment model of listed real estate companies.Usingthe system GMM (SYS-GMM) method to estimate parameters, studies show thatmonetary policy can effectively influence the real estate business financing behavior,and indirectly control the real estate market operation.We reject the idea that themonetary policy in the Chinese real estate market is totally invalid conclusions.Secondly, we introduced the Difference-in-Difference in the capital structuredynamical adjustment model to research the different characteristics of thecorporation on the effects of monetary policy.The conclusion shows that companysize, ability to provide security, the nationalization and the financial constraints cansignificantly influence of monetary policy on the real estate market conduction.Finally, we further analyz the monetary policy for the real estate business creditresource allocation efficiency on the basis of the previous text. Finally we have cometo the overheated real estate market makes monetary policy can not erase theambitions of pursuing the interests of entrepreneurs.The real estate companies stillmaintain a high level of public debt in order to finance new investment activities.However, the tight monetary policy significantly reduced the real estate businesscredit resources allocation efficiency make the profit-driven capital began to shift to other economies, and effectively suppresses the overheated real estate market.This study will help to deepen the government to recognize the monetary policyeffectiveness in the real estate market, and cause the decision-makers know the greatimportant effectment of monetary policy in the main differences between the differententerprises.This study also can provide a reference to the government to formulatenew monetary policy to cope with the current overheated real estate market and highprices phenomenon.