Shadow Banking,Monetary Policy And Real Estate Price In China

In recent years,real estate market in China presents a trend of "simultaneously rising of volume and price".The continuous rise of real estate prices has aroused widespread concern in the whole society.Due to the characteristics of the real estate industry,its need of the amount of capital required is huge.Thus governments usually tighten monetary policy by tightening traditional bank lending to control real estate prices.Recently,however,the government has been trying to tighten monetary policy,but the real estate prices is still"rising against the market." At the same time,the outbreak of the subprime mortgage crisis has led to a new concept that has drawn the attention of scholars all over the world,it is shadow banking,which is also called the"parallel financial system." China's shadow banking mainly represents the supplement to the traditional financing methods,however,its scale has expanded rapidly day by day.Its impact on the real economy has become even more important.The shadow banking with the characteristics of free from the regulatory system becomes another important financing channel for real estate company.And China's shadow banking led to the relevant government macroeconomic regulation and control policy for the effects of real estate prices have been weakened.It can be seen that the correlation between shadow banking and real estate price in China and its impact on monetary policy is not negligible.Combined with Chinese specific national conditions,the interactive relationship between monetary policy and real estate prices in the context of macro-control has become more complicated due to the introduction of shadow banking.The article takes real estate price as a starting point and integrates it with shadow banking and monetary policy into a unified research framework.First,it summarizes relevant research results in China and abroad,then summarizes the development status of China's real estate market and its dynamic relationship with shadow banking and monetary policy.On this basis,the article builds an RBC model including the real estate market,the shadow banking system and the traditional credit market,and makes a theoretical analysis.The last,the article builds the panel model by using the data of 31 provinces in China,and compares the panel models of three regions according to the division of economic regions,and then introduces the dynamic panel model for empirical test.Through theoretical and empirical results found that according to current situation of rapidly rising real estate prices,when the government to tighten monetary policy to control real estate price rose sharply,although it makes the traditional way of financing is restricted,but the shadow banking has not been effectively controlled.Then it with a higher interest rate became an important financing channel for real estate enterprises.To a certain extent,shadow banking helped the real estate price rising,and made the tight monetary policy effect been weakened or even offset.Based on the conclusion,the article makes some related suggestions on how to strengthen the supervision of shadow banking,strengthen the comprehensive management of the real estate market and improve the effect of monetary policy.