China’s Real Estate Bubble and Its Financial Risk Prevention Study
|School||Southwestern University of Finance and Economics|
|Keywords||real estate bubble the relevance of the financial crisis preventive measures|
Since 1998, China implemented the reform of commercial housing, real estate has been the rapid development,and China’s urban residents living conditions have been improved. Pulling into the national economy to move forward with the "Troika" an important part of the real estate industry has become a pillar industry of the national economy. But at the same time, China also appeared in the overheated real estate trend. Real estate investment growth is too high, too fast increase in the area of vacant commodity housing. Housing prices rose too fast, and so has become the focus of attention of the whole society. Especially in the last two years, China’s housing market, both stock prices rise, together with the appreciation of the Renminbi,and the overseas hot money into one after another. An atmosphere of increasingly strong market speculation, in view of the situation, academics and industry set off the real estate market in China is a "bubble" of great debate. At the same time, as a capital-intensive real estate and financial sector there is a natural relationship. As a result, China’s real estate bubble is China’s financial system will bring huge risks, as well as how to deal with such risks will naturally become one of the topics of debate.Of particular concern is that since 2007 the United States at the beginning of the credit crisis intensified, so far has evolved into a global financial crisis. In Europe and the United States stock market drop under the influence of China’s stock market in 2007 from the 6,000-point drop in the current 1800 points below the two-thirds of China’s stock market has shrunk. The Chinese real estate prices are still "high", although there is no price the city, trading was light. However, over whether the Chinese housing market bubble, is it necessary to save the market, industry and academia are given two completely different points of view.As a result, China’s real estate price bubble exists, is it necessary to save the market. China’s real estate financial risk inherent in how to guard against. China’s real estate financial system, reconstruction of how the United States still needs to learn experiences and how the United States a lesson from this commandment to guard against financial risks of China’s real estate, and so on all have a strong theoretical value and practical significance.For this reason, in this paper, recalled in the real estate bubble and its financial risks on the basis of research, the use of game theory, econometrics, the system of research methods, such as proof of the existence of China’s real estate bubble. And further analysis of the real estate bubble of the financial crisis triggered a major mechanism of the last in-depth analysis of the U.S. financial crisis broke out. Finally, the United States in-depth analysis of the financial crisis broke out. Made to prevent the real estate bubble triggered the financial crisis, and that the United States a lesson from this commandment reconstruction of our country’s financial system and real estate.