Abstract
In order to reply the change of macro-economy and promote the reasonable development of national economy, the government regulates the stable development of real estate market with the interest rate policy. Aim at the different stage of real estate market, central bank implemented a series of interest rate policies. These policies include reducing interest rate to promote development from 1998 to 2002, increasing interest rate to control speculation from 2003 to 2007, and reducing interest rate to encourage reasonable housing consumption from 2008 to today. Based on event study, this paper using the data of real estate stock index from Shanghai and Shenzhen stock market, analyzes the effects of interest rate fluctuation to real estate stock. We can conclude that real estate block has been weak-form efficient market. Therefore, the government may make the best of interest rate policies to regulate the real estate market.
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