The Empirical Analysis Of Economies Of Scale And Scope For China’s Listed Real Estate Companies

China rural urbanization reform concerning marketization as the core has been promoted gradually since1998; it revolutionized the model of housing supply, The government and public institution provided houses for people before the reform. It released the demand of unit for business purposes, investing in real estate market and improving the house condition. Based on the huge potential of urban housing demand and the long-term bullish expectations of real estate prices, real estate enterprises in our country have sprung up like mushrooms, it reached unprecedented levels in the number of practitioner and development companies and the area of real estate development.The real estate industry is one of the most important basic and pillar industries, its operating efficiency has an directly effect on the overall national economy. The real estate industry has achieved rapid development since21centuries; the area of exploitation, the number of enterprise and employment all have reached unprecedented levels. On the one hand, real estate enterprises are enjoying the high profits brought over by the development of industry; on the other hand, the low efficiency of enterprise operation in the real estate industry has been criticized by people. We must clear the factor of affecting business efficiency to improve the efficiency of industry. The study of economics of scale and scope is an important part of efficiency research. Confirming the levels of economics of scope and scale on real estate industry is related to the decisions of industrial policy and business operation.In order to determine the level of scale economy and scope economy on real estate industry in our country, the article uses the generalized translog production function as a tool to analysis it, based on the data of Shanghai and Shenzhen listed real estate companies. The result showed that all the sample firms are in the economics of scale and scope, but the levels of operation efficiency is still low; the scale of companies in real estate industry is small compared with the suitable scale; the firm’s comprehensive service ability is insufficient and the product type is not enough. according the empirical results, this article do an deep analysis of the factors of influencing the scale economy and scope economy, and then put forward some suggestions about improving the economics of scale and scope. These will provide some references for government on industrial policy setting and firms on management decision.