Analysis Of Financial Regulation Policy In China's Real Estate Market

After2003,the real estate industry has developed rapidly,focusing on the attention of the society.First of all,the real estate industry to provide basic living spaces for residents,the fundamental relationship between the national standard of living;secondly,the real estate industry has profound impact on all sectors of the economy's production and business activities,and the development of the real estate industry has also brought considerable tax revenue;again,the real estate industry involved in all walks of life,such as building materials,furniture,transportation and so on,it will promote the development of a series of related industries to flourish.Therefore,the real estate industry plays a very important role in the national economy.China's real estate market has been fully marketed along with the development of economy and finance,but it has also brought many problems.The excessive increase of housing price and high housing price have had a great negative impact on residents' life,and this condition is more common in the eastern cities.Therefore,how to stabilize the housing price and solve the housing problem according to the situation of each region should be solved urgently.Throughout the history of economic development of all countries in the world,the rapid growth of the national economy has always accompanied by the rapid rising in real estate prices,while real estate price increasing is often higher than the growth rate of GDP,the reason for the real estate industry is a capital intensive industry,whose development and the financial activity are closely related to the cause of this economic phenomenon.Further more,China's real estate market development is relatively late and itsmechanism is not perfect.Therefore,the central government's regulation and control effect on the real estate industry's financial policy is of great significance.The article discusses the current situation and problems of the real estate market in China and how the financial policy should be regulated.First gives the conception of the real estate financial controlling policy and then briefly discusses the course of development of China's real estate market and the present situation of real estate finance and characteristics,combined with China's real estate market cycle related financial regulatory policy,qualitatively explains the necessity of macro financial policy on the real estate market.Secondly,the research on the relationship between three tools of financial controlling policy and the real estate market and analyzes the impact of monetary policy on the development of the real estate market in China through the analysis of money supply,interest rate and real estate related credit.The VAR empirical test on the relationship between money supply and housing prices and the theoretical analysis of the relationship between interest rates,credit and real estate all show that they are closely related to the real estate market.Again,on the basis of the analysis above,the current situation of China's real estate market is integrated,since there are differences in the development of various regions,I use the panel data error correction model to divide Chinese provinces and cities into eastern,central and western.And according to the empirical analysis,we can study on the regulation effect of Chinese real estate financial regulation policy more in-depth.The empirical analysis found that various factors have different effects on different regions,including the size of credit from the long-term equilibrium and the Short-term of the eastern and western regions have a great influence,and the fluctuation of housing price in central region is more from the economic development.Finally,combined with previous theories and empirical analysis,the article puts forward some policy recommendations according to the characteristics of Chinese real estate market,the relationship between monetary policy and the real estate market price fluctuation indifferent regions.