The Impact of Benchmark Interest Rate towards Loan for the Housing Price – A Case in Beijing and Shanghai from 2011 to 2015

Yi Wang

doi:10.54254/2754-1169/48/20230425

Research Article

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Published on 1 December 2023

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Wang,Y. (2023). The Impact of Benchmark Interest Rate towards Loan for the Housing Price – A Case in Beijing and Shanghai from 2011 to 2015. Advances in Economics, Management and Political Sciences,48,62-68.

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The Impact of Benchmark Interest Rate towards Loan for the Housing Price – A Case in Beijing and Shanghai from 2011 to 2015

Yi Wang *^,1,

¹ Beijing Normal University-Hong Kong Baptist University United International College

* Author to whom correspondence should be addressed.

https://doi.org/10.54254/2754-1169/48/20230425

Abstract

The housing market in China has been booming for two recent decades, and housing issues gradually become one of the most important concerns of the residents in China as the housing price was rising dramatically. This paper would analyze the influences between the housing price and the benchmark interest rate in two major first-tier cities of China, Beijing, and Shanghai from 2011 to 2015 before the interest rate reform in China was completed, by conducting data analysis in the regression model. It is found that the benchmark interest rate for loans has an important role in influencing housing prices. Finally, this paper would help make a clear and better understanding of the mechanism of the Chinese benchmark interest rate for loans, and how Chinese governments used it to sort out residential accommodation issues by comparing it to the recent Benchmark interest rate (LPR).

Keywords

benchmark interest rate, housing prices, housing market, mortgage loan

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References

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About volume

Volume title: Proceedings of the 2nd International Conference on Financial Technology and Business Analysis

Conference website: https://www.icftba.org/

ISBN：978-1-83558-143-8(Print) / 978-1-83558-144-5(Online)

Conference date: 8 November 2023

Editor：Javier Cifuentes-Faura

Series: Advances in Economics, Management and Political Sciences

Volume number: Vol.48

ISSN：2754-1169(Print) / 2754-1177(Online)

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