Study Of Driving Factors Of Real Estate Price In China In The Perspective Of Virtual Economy

In the context of the rapid development of economic globalization and financial liberalization, virtualization of the world economy is increasing. Currently, virtual economies have moved beyond the traditional economy size. With the development of virtual economies growing, the virtual real estate attract investors of all ages.At present, in the functioning of the international financial system increasingly,and with the prosperity and innovation of financial instruments in the financial markets,virtualization degree of China’s economy continues to improve. Real estate has become just as important as financial assets such as equities, funds investment. The level of Real economy fundamentals that can explain the property prices is decreasing.Virtualization in real estate and volatility of real estate price affect the healthy development of our national economy to a large extent, directly affects the vital interests of the people as well as social harmony and stability. Thus, studying of virtual real estate, and drivers of the current real estate price to make more scientific and rational explanation from the perspective of virtual economy in the modern market economy,is of great practical significance.This paper study on the factors driving real estate prices in China, from the special perspective of virtual economy on both theoretical and empirical analysis.First, introduct the overview of virtual economy and virtual characteristics of real estate, and defines the concepts and theory that is to study about this article. Then analysis the current situation of China’s real estate market. Based on the virtual characteristics of real estate, through real estate asset pricing models, rational expectations, the substitution effect of asset investment, financial accelerator theory, the paper explores the driving mechanism of real estate prices, focusing on the analysis of the money supply, interest rates, bank loans, stocks, exchange rates and other key drivers.In the empirical aspects, the paper build VAR model.based on key drive factors, Select generalized currency supply volume, and financial institutions 1-3 years period of loan interest rate, and real estate sources of domestic loan,and SSE shares integrated index, and real effective exchange rate of RMB indicators as explained variable, select national housing sales price as Explanatory variables indicators, select 2005 3rd quarter to 2013 4th quarter of as quarter data, application smooth sexual test, and Association whole test, and Granger causal test, and Impulse response functions and variance decomposition methods, research key drivers of China’s real estate prices.Empirical results indicates that, generalized currency supply volume, and real estate sources of domestic loan, and SSE shares integrated index, and real effective exchange rate of RMB indicators have positive effect on national housing sales price, and financial institutions 1-3 years period of loan interest rate on national housing sales price are negative; through variance decomposition of results, we know that generalized currency supply volume, and real estate sources of domestic loan, and SSE shares integrated index contribute larger degrees on real estate price. While financial institutions 1-3-year lending interest rate of RMB real effective exchange rate of contribution to national home sales price is relatively small.Finally, for the theoretical and empirical results, we make policy recommendations to maintain the real estate price stability and sound.from the angle of virtual economy’s.