The Relationship between Real Estate Bubble and Financial Crisis —— Taking Shanghai as an Example

Research Article
Open access

The Relationship between Real Estate Bubble and Financial Crisis —— Taking Shanghai as an Example

Yujie Zhang 1*
  • 1 Dipont KCS Chengdu    
  • *corresponding author vivian.zhang@kcschengdu.com
Published on 13 September 2023 | https://doi.org/10.54254/2754-1169/8/20230331
AEMPS Vol.8
ISSN (Print): 2754-1177
ISSN (Online): 2754-1169
ISBN (Print): 978-1-915371-43-0
ISBN (Online): 978-1-915371-44-7

Abstract

In recent years, the real estate market has become increasingly hot, developing very quickly, and has become one of the important industries to promote the development of GDP in China. However, the rapid development of many negative effects, such as high prices and rising costs of living, has caused the real estate market to bubble, causing people to worry about whether it will cause a financial crisis, resulting in an economic crash. As a result, many scholars have conducted various studies on the real estate bubble, but they have not reached a consensus on the bubble. Economic crashes caused by real estate bubbles have occurred on occasion throughout history, and many financial crises are triggered by excessive real estate bubbles. This paper visually analyzes the development of the real estate market in Shanghai in recent years using a literature review method, analyzes the transmission relationship between the real estate bubble and the financial crisis, expounds on the harm caused by the bursting of the real estate bubble, and proposes corresponding countermeasures for the benign development of the real estate market.

Keywords:

real estate, bubble, financial crisis, Shanghai

Zhang,Y. (2023). The Relationship between Real Estate Bubble and Financial Crisis —— Taking Shanghai as an Example. Advances in Economics, Management and Political Sciences,8,290-299.
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References

[1]. Edward L.Real Estate Bubbles and Urban Development [J].Glaeser.Asian Development Review .2017 (2) :34.

[2]. Abildgren K,Hansen N L,Kuchler A .Overoptimism and House Price Bubbles[J].Journal of Macroeconomics,2018,56(6) : 1-14.

[3]. Goodman A.C,Thibodeau T.G.Where are the speculative bubbles in US housing markets?[J]. Journal of Housing Economics, 2018,17(2): 117-137.

[4]. Markus K,Brunnermeier Martin Oehmke.Bubbles, Financial Crises, and Systemic Risk[J].Handbook of the Economics of Finance,2013(2) : 1221-1228.

[5]. Alexander Bleck,Xuewen Liu.Credit expansion and credit misallocation [J].Journal of Monetary Economics ,2018: 27-40.

[6]. Wang Wen, Lu Zhe. Real estate bubbles and systemic financial prevention: Based on the perspective of international comparison [J]. International Finance Research, 2020(1): 26-34.

[7]. Ren Bosong. An Empirical Study on the Impact of Money Supply and Real Estate Bubble on Financial Risks [M]. Liaoning University, 2019.

[8]. Yang Yang. Research on Financial Risk Prevention in Real Estate Investment in my country [M]. Jilin University of Finance and Economics, 2019.

[9]. 2020 Shanghai Statistical Yearbook. 2020. https://tjj.sh.gov.cn/tjnj/zgsh/tjnjen.html.

Cite this article

Zhang,Y. (2023). The Relationship between Real Estate Bubble and Financial Crisis —— Taking Shanghai as an Example. Advances in Economics, Management and Political Sciences,8,290-299.

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About volume

Volume title: Proceedings of the 2nd International Conference on Business and Policy Studies

ISBN：978-1-915371-43-0(Print) / 978-1-915371-44-7(Online)
Editor：Javier Cifuentes-Faura, Canh Thien Dang
Conference website: https://2023.confbps.org/
Conference date: 26 February 2023
Series: Advances in Economics, Management and Political Sciences
Volume number: Vol.8
ISSN：2754-1169(Print) / 2754-1177(Online)

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References

[1]. Edward L.Real Estate Bubbles and Urban Development [J].Glaeser.Asian Development Review .2017 (2) :34.

[2]. Abildgren K,Hansen N L,Kuchler A .Overoptimism and House Price Bubbles[J].Journal of Macroeconomics,2018,56(6) : 1-14.

[3]. Goodman A.C,Thibodeau T.G.Where are the speculative bubbles in US housing markets?[J]. Journal of Housing Economics, 2018,17(2): 117-137.

[4]. Markus K,Brunnermeier Martin Oehmke.Bubbles, Financial Crises, and Systemic Risk[J].Handbook of the Economics of Finance,2013(2) : 1221-1228.

[5]. Alexander Bleck,Xuewen Liu.Credit expansion and credit misallocation [J].Journal of Monetary Economics ,2018: 27-40.

[6]. Wang Wen, Lu Zhe. Real estate bubbles and systemic financial prevention: Based on the perspective of international comparison [J]. International Finance Research, 2020(1): 26-34.

[7]. Ren Bosong. An Empirical Study on the Impact of Money Supply and Real Estate Bubble on Financial Risks [M]. Liaoning University, 2019.

[8]. Yang Yang. Research on Financial Risk Prevention in Real Estate Investment in my country [M]. Jilin University of Finance and Economics, 2019.

[9]. 2020 Shanghai Statistical Yearbook. 2020. https://tjj.sh.gov.cn/tjnj/zgsh/tjnjen.html.

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