Real Estate In China Research Articles

Internal control in the real estate industry and its financial risk management

In recent years, with the rapid development of China's economy and the dynamic changes in housing policies, China's real estate enterprises are facing severe challenges while flourishing. In order to ensure the future sound development of real estate enterprises, enterprises need to deepen their own internal control system and do a good job in financial risk management. From the perspective of internal control and financial risk management, this paper aims to analyze the shortcomings of real estate enterprises in internal control and financial risk management at the present stage and put forward corresponding countermeasures and suggestions in order to help enterprises improve their management level and achieve long-term development.

A Comparative Study between China's Real Estate Ownership Tax System and Hong Kong and Taiwan

1949년 10월 1일, 중국은 성립 초기부터 부동산보유세에 대한 입법을 시작하였으며 1986년 국무원에서 「방산세임시조례」(房産稅暫行條例)를 통과하였다. 또한 1988년에는 「도시토지사용세임시조례」(城鎭土地使用稅暫行條例)를 통과하였다. 이는 개혁개방 이후 중국에서 새로운 부동산보유세에 대한 법률제도가 건립되기 시작하였음을 의미한다. 또한 개혁개방이후 빈부격차가 날로 심화되고 부의 비중에서도 부동산이 차지하는 비중이 상당히 높아지고 있다. 이에 반면 현재 중국에서 재산세의 한 종류인 부동산보유세의 제도설계가 제대로 돼 있지 않았다. 중국의 현행 세목 중 재산세는 방산세(房産稅), 취득세(契稅), 차선세(車船稅) 정도여서 중국의 빈부격차를 조절하는 데 한계가 있다. 부동산세제의 설계는 주민들의 중국 부동산보유에 따른 빈부격차를 조절하는데 의미가 있다. 2003년부터 제출되기 시작한 물업세(物業稅)로부터 2011년 1월 28일 상하이와 충칭 두 시에서 실시된 방산세(房産稅)는 2015년에 이르러 방지산세(房地産稅)라고 이름을 바뀌었다. 하지만 이러한 부동산보유세의 본질은 모두 개인주택 보유에 대해 부과하는 보유세이다. 또한 중국에는 아직 개인소유의 비사업용 주택에 대한 보유세를 전면적으로 징수하지 않았다. 이는 또한 사회의 불공정을 초래하였으며 이로서 부동산 조세제도로 부의 재분배 기능을 요구하고 있다. 그리하여 2011년부터 상하이와 충칭에서는 부동산보유세를 도입하였다. 이번 개혁의 핵심은 주민의 개인주택 보유단계에 대한 부동산보유세의 부과이다. 또한 현재는 오직 상하이와 충칭에서만 소규모적으로 시범이 있을 뿐 다른 지역에는 아직 부과되지 않았다. 하지만 2021년 10월, 전국인민대표대회상무위원회에서는 국무원에 부분 지역에 대한 방지산세(房地産稅)개혁에 대한 시범을 수권하였다. 이로써 향후 중국에서는 점차적으로 더 많은 도시에 부동산보유세를 도입할 것이다. 따라서 이 글은 실시된 현 시범 도시의 부동산보유세와 대만과 홍콩의 부동산보유세제에 대한 비교･분석을 통하여 차후 시범 도시의 부동산보유세제에 대한 시사점을 제시하여 부동산 시장을 더 잘 지원하고 감독하는 기능을 담당하게 하고자 한다.

Analysis of Urban Residents' Sports Consumption Demand Based on Intercepted Regression Model

At this stage, broadening the consumer market, upgrading the consumption system and gradually establishing a consumption-led development concept are key factors in promoting high-quality economic development. At the same time, China's macro economy is also experiencing another test. The rapid development of China's real estate market in recent years has attracted a large number of investors, and real estate prices have produced irrational and substantial increases. Behind the boom of the real estate market is a social system crisis driven by profiteering and the growing seriousness of real estate financial bubble. So exploring the mechanism of the influence of real estate prices on the upgrading of residents' consumption is important for the current stage of China. Therefore, it is important to investigate the mechanism of real estate price impact on consumer upgrading for the coordinated development of real estate industry and national economy. In this paper, we analyze and examine the theory on the consumption improvement by the literature survey method. We also summarize the present research on the correlation and the influence mechanism of the real estate price and the consumption improvement and choose the index which reflects the present state of the real estate industry and the consumption of the inhabitant. Besides the input indicators that qualitatively manage the impact of housing prices on the improvement of residents' consumption, we first use the descriptive statistics method to understand the level of the Chinese real estate market and improve consumer spending. Based on this, the descriptive statistical method is applied to define the current state of China's real estate market and the level of improvement in consumption, and to define the standard for improving consumption in China. On the other hand, based on the spatial and spatial spillover points of view, we use spatial analysis framework combined with exploratory spatial data analysis and GIS to investigate spatial correlation between consumption structure and housing price, and accurately reflect the spatial clustering status of the index by drawing. Moran dispersion plot and Lisa cluster plot, then the spatial Darwinian model, are used to investigate the impact of real estate prices on the increase in occupant consumption from a macro perspective.

Resource Opportunity in China’s Market Transition and Governance: Time Factor in Urban Housing Inequality

Since China’s reform and opening up, the country’s rapid marketization process has been accompanied by the rapid growth of inequality, which has been significant for all classes of society. In terms of its impact, housing inequality is particularly noticeable. In this paper, we discuss the influence of real-estate purchase time, organization, human capital, and political capital on the value of real estate and the appreciation of real estate in China by using a conditional mean model and a quantile regression model. The differences in the degree of influence of these factors on different quantile levels are also investigated. We found that, after adding the time factor, the prior possession of resources in the early stage of market transformation will benefit the long-term marketization process. Organizations that can penetrate “market-redistribution” and professions that directly participate in the distribution of real-estate resources also have significant advantages in this regard.

The connectedness between Hong Kong and China real estate markets: spillover effect and information transmission

The connectedness between Hong Kong and China real estate markets: spillover effect and information transmission

Cross-border investment and corporate innovation: Evidence from the Chinese market

This paper explores the motivation and features of industrial enterprises investing in real estate in China. Using the A-share listed companies from 2005 to 2019, we investigate the change in the dominant position of two competing effects, namely “credit relief effect” vs “resource reset effect” of real estate investment under different conditions. The empirical results show that both the likelihood and level of entering real estate sector for industrial enterprises restrain the input and output of corporate innovation. The developed region strengthens resource replacement effect of cross-border investment on corporate innovation. Resource replacement effect is more significant in developed regions, whereas the resource replacement effect is partly offset by the credit relief effect in undeveloped regions. The findings are robust after controlling for potential endogeneity concerns. The results contribute to enhancing the innovation vitality of micro subjects and preventing China's systemic financial risks under the environment of supply-side structural reform.

Asymmetric effects of monetary policy and output shocks on the real estate market in China

The real estate market is essential for promoting economic growth, and it plays an important role in the transmission mechanism of monetary policy in China. In this study, we apply a smooth transition vector autoregression model to investigate the asymmetrical effects of monetary policy and output on the real estate market. The empirical results verify the effectiveness of the monetary policy based on the real estate market and the asymmetrical effects of monetary policy and output on the real estate market. In addition, the smaller response of the real estate market to output in a low-speed growth regime means that negative shocks (e.g., COVID-19) from output have weak effects on the real estate market. Finally, monetary policy has bigger positive effects on the real estate market in a low-speed growth regime; thus, quantitative easing monetary policy can effectively stimulate China's real estate market at present.

Construction of spatial information model of 3D real estate: case study of the Nanjing gulou central business district

Complexity of urban construction and land use is increasing which cannot be represented adequately by 2D systems. The successful construction of a Spatial Information Model of 3D Real Estate (SIM-3RE) is valuable to achieving a refined administration of 3D space and property-rights of urban real estate in China. In this paper, the Nanjing Gulou Central Business District was selected as an experimental region, and the historical data of surveys and maps of the parcels and buildings were collected. After the supplementation of some missing data (such as height) by surveying, the SIM-3RE was constructed using the 3D partitioned units for buildings and 3D parcels of land.

The Performance of Non-Listed Opportunity Real Estate Funds in China

Institutional investors have sought exposure to the China real estate market, often via opportunity real estate funds. This has been by a pure China opportunity real estate fund or by a pan-Asia opportunity real estate fund where China opportunity real estate was part of this real estate portfolio. This paper develops two bespoke China opportunity real estate fund performance indices to assess the risk-adjusted performance and diversification benefits of China opportunity real estate funds in a mixed-asset portfolio. Over 2008-2019, pan-Asia opportunity real estate funds were seen to outperform pure China opportunity real estate funds. China opportunity real estate funds were seen to have a role in a China mixed-asset portfolio; particularly at lower risk levels in the portfolio risk spectrum. This paper also highlights critical issues for institutional investors for effective China real estate exposure.

Risk Management Innovation Mechanism of China's Real Estate Enterprises under the Current Macro Background

Since the reform and opening up, China's real estate industry has been developing rapidly. The Chinese government has begun to carry out macro-control on real estate, planning and construction from various aspects including finance, people's livelihood and social security. Real estate enterprises, like the speed of the rocket into the sky, have gone bankrupt in the fierce market competition, and some lucky people choose merger and reorganization. Springing up, the continuous development of national economy, real estate enterprises to pour money into a variety of real estate enterprises, the reasonable management of real estate investment, identify risks, cultivate the spirit of safety, is a real estate enterprise top priority, reasonable research the risk of real estate enterprise case, well data and forward-looking consciousness. The experimental results show that the risk management efficiency of Real estate enterprises in China has been improved by 9.6% based on the research of risk management innovation mechanism under the macro background. The risk of real estate enterprises can be attributed to the following a few local governments for infrastructure, the construction is reasonable, is there any area to maximize utilization of land, urban road traffic conditions, the greening situation of living environment, reasonable collocation, green belts, improve housing, for building the height and size of the restrictions and management. If real estate enterprises do not understand these information and lead to unreasonable development and ultimately lead to financial crisis risk. For the financial risk analysis, discussion and summary, so as to the real estate risk prediction rich research results.

Research on the steady and healthy operation of China’s real estate industry in the new development stage

Under the new background that the China’s current economy is transforming from high-speed growth to high-quality development, the real estate industry, which is related to the national economy and people's livelihood, urgently needs transformation and upgrading. Based on this, this paper uses the relevant data of the real estate industry from 2002 to 2019 to build a regression model to find out the factors affecting the healthy operation of the real estate industry and conduct a scientific analysis of the current situation of China's real estate industry. The grey model is used to predict the trend of the real estate industry in the next few years, and relevant suggestions are put forward to provide reference for the long-term development of the real estate industry. On the basis of the prediction that the real estate industry will fall back in the next few years, this article suggests that the real estate industry actively innovate, seek new economic growth points and the government improve the land supply policy, strengthen the supervision of the real estate industry, and inject new vitality into the demand side on account of people's wellbeing.

Analysis on China's Real Estate Economy Based on Big Data

Over the past 40 years of China's reform and opening -up, the Chinese society and national economy have been booming. The real estate economy as a pillar industry of the national economy has achieved rapid growth. However, the U.S. subprime mortgage crisis in 2007, COVID-19 and the intensifying China-US trade war in 2020 have repeatedly raged, like the "Three Sword of Damocles" hurting Chinese economy. Based on rencent 10 years data collection, the paper analyzes the trend of real estate prices and puts forward countermeasures from many aspects to achieve to stabilize the housing market, economic and social situation.

Ripple Effects of House Prices of China’s Three key Regions Including First Tier and Second Tier Main 29 Cities

This paper identifies the ripple effects of house prices of China’s key three regions including first tier 5 cities (LOG(ALL5)), second tier top 8 cities (LOG(ALL8)) and second tier 16 cities (LOG(ALL16)) for 2010Q1 to 2019Q2 periods, together with the impulses from fixed assets investments toward China three key regions’ house prices covering period from 2010Q1 to 2019Q2. The empirical analysis is conducted using the robust econometric multiple frameworks, undertaken the forms of principal component method (PC), VAR and Generalized Impulse Response (GIR) techniques. Over the 20 quarters tested, strong evidences of ripple effects were found from Q1 to Q10. Stronger positive ripple effects were identified between two regions of second tier cities (LOG(ALL16) and LOG(ALL8)) versus first tier region (LOG(ALL5)) and second tier regions (LOG(ALL16) and LOG(ALL8)). This result suggests the first-tier cities in China have become less attractive to households and investors whereas second tier cities became more attractive due to their pristine nature and improved infrastructure. Furthermore, over the 20 quarters tested, a negative response was noticed on house price return of LOG(ALL5) toward LOG(FAINVEST) while house price returns of LOG(ALL8) and LOG(ALL16) toward impulses from LOG(FAINVEST) are positive. The result confirms our finding of stronger ripple effects of two regions of second tier cities due to improved infrastructure from fixed asset investments. This paper also assists readers who are interested in investing in China real estate markets. Policy makers could reference this research to set feasible housing policy with the aim to better housing market stability.

Nation Branding for China: Global Brokers in International Real Estate in China

AbstractIn this article I examine “nation branding” strategies in the marketing of international real estate in China. In their push to secure Chinese customers on global markets worldwide, many Western corporate actors incorporate commercial strategies that aim to enhance the appeal of the nations and cities where the sale properties are located. Their marketing narratives equate investment in foreign real estate with an investment in “quality of life”, and promote the figure of the “immigrant investor” as a way of belonging to foreign countries. The analysis focuses on the competing narratives, insecurities and hesitations of foreign real estate agencies working on China’s international real estate market. The article is based on fieldwork I conducted in China between 2014 and 2016, observing international real estate trade shows, conducting interviews with real estate agents, and reviewing promotional materials.

Research on external financial risk measurement of China real estate

AbstractThis study applies the method proposed by Diebold and Yilmaz to construct a spillover effect index with which we compare the bilateral information spillover effect and time‐varying characteristics of China's real estate markets to those of representative international financial markets from July 2005 to March 2018 to measure the financial risks in China's real estate markets. The empirical results show the following. (a) There is a significant information spillover effect between China's real estate markets and related stock markets, and China's real estate is in a net information receiving position. (b) After 2016, China's real estate financial risks entered a downward adjustment cycle, and financial risks have gradually declined. These results suggest that Chinese real estate markets' “de‐inventory” has achieved remarkable results and that real estate financial risks have been significantly reduced. However, due to China's limited real estate financial investment channels, the nation's real estate markets should still be cautiously controlled and regulated to respond to potential real estate financial risk.

Family Planning Policy and Housing Price in China

Different intergenerational fertility levels affected by the family planning policy under such altruistic behavior will inevitably affect real estate prices. This paper studies the effect of different intergenerational fertility levels on real estate prices under the parental altruistic behavior model with Chinese characteristics by constructing an Overlapping Generation Model (OLG) with intergenerational wealth transfer. The empirical results show that the lower the intergenerational fertility level of the middle-aged generation, the higher the average wealth level transferred to the youth generation, and the higher the real estate price. This result shows that, unlike the high fertility rate of popular cognition, the low fertility rate of the middle-aged generation under the influence of the family planning policy and the altruistic behavior of the Chinese parents are the important reasons for the current high housing prices. This paper reveals the relationship between China's population policy and real estate price, and can guide the judgment of China's real estate market in the future.

Investigating the determinants of financial leverage: The case of China's real estate sector

This study empirically investigated the determinants of capital leverage of the Chinese real estate sector. Annual panel data of 130 companies covering the period 2007-2017 were used. Profitability was treated as a latent variable to avoid any specification error. Structural equation modelling (SEM) confirmed that while the size and financial cost have a significant positive effect on the level of capital leverage; liquidity, tangibility, and non-debt tax shield (NTDS) have a significant negative effect. The findings provide supportive evidence for both the trade-off theory and the pecking order theory. An interesting outcome of our research is that despite the substantial difference in institutional structure between China and Western countries, the firm-specific determinants of leverage are partially similar between the two. The policy implications of our research are discussed in the conclusion section.

Housing price, talent movement, and innovation output: Evidence from Chinese cities

AbstractHow housing costs would influence the job‐housing choice of talent and associated city‐level innovation performance is a question of interest for urban development policies. Recently, considerable attention has been paid to the influence of rising housing prices on the attraction of talent and the associated innovation output in major Chinese cities. In this paper, we use the housing price data of 51 cities from the China Real Estate Index System database and the corresponding macro data of China City Statistical Yearbooks from 2005 to 2014 to analyze this focal research question. The empirical analysis shows that the increase in city housing prices generally correlates positively with city innovation outcome and talent attraction, suggesting no crowding‐out effect on the innovative performance of the city. However, the positive association between housing prices and innovation outcome and talent attraction has started to disappear in first‐tier cities in recent years, suggesting potential crowding‐out effect if the increasing housing prices transform to bubbles. This research thus provides considerable policy implications concerning the impacts of housing prices on talent movement and innovation output.

Pragmatic Identity in China and the US Real Estate Advertising: Critical Pragmatic Analysis

This research attempts to find out similarities and differences of values through comparison of pragmatic identities constructed in china real estate advertising and that in the US real estate advertising. The study selected 50 Chinese and 50 American electrical real estate advertising.to analyze pragmatic identities constructed in these advertisements and concluded 16 kinds of identities. Both American and Chinese advertisers tend to presuppose consumers’ identity to advertise real estate although explicit linguistic resources regarding identity such as champion are also used to construct identity. Advertisers tend to appeal and provoke consumers’ purchase desire so that they construct different identities according to Maslow’s hierarchy of needs especially belonging (love) and self-realization needs. As regard to differences of identities embodied in Chinese and American real estate advertising, Hofstede’s cultural dimensions are adopted to explain.

Investigating the determinants of capital leverage: the case of China's real estate sector

Investigating the determinants of capital leverage: the case of China's real estate sector