Research Article
Open access
Published on 27 April 2023
Download pdf
Wang,K. (2023). Empirical Study on China’s House Prices. Advances in Economics, Management and Political Sciences,6,54-60.
Export citation

Empirical Study on China’s House Prices

Kun Wang *,1,
  • 1 Accounting and Finance, University of Exeter, United Kingdom

* Author to whom correspondence should be addressed.

https://doi.org/10.54254/2754-1169/6/20220144

Abstract

This study aims to empirically study house prices and their relationship with China's critical economic and financial metrics. The key metrics include interest rate, inflation rate, and stock index prices. This study shows that stock index prices do not significantly impact house prices in China. At the same time, long-term interest and inflation rates positively impact house prices in China.Additionally, short-term interest rate possesses a negative im-pact on house prices. This can shed light on policymakers in China when making economic decisions to influence house prices in China. On top of this, this study also compared house prices and real estate stock index prices and concluded that the two differ significantly.

Keywords

interest rate, stock index, inflation rate., house prices

[1]. Chamon, M.D. and Prasad, E.S., 2010. Why are saving rates of urban households in China ris-ing?. American Economic Journal: Macroeconomics, 2(1), pp.93-130.

[2]. Yin, S., Ma, Z., Song, W. and Liu, C., 2019. Spatial justice of a Chinese metropolis: a perspective on housing price-to-income ratios in nanjing, China. Sustainability, 11(6), p.1808.

[3]. Shen, L., 2012. Are house prices too high in China?. China Economic Review, 23(4), pp.1206-1210.

[4]. Zhang, C., An, G. and Yu, X., 2012. What drives China's house prices: Marriage or money?. China & World Economy, 20(4), pp.19-36.

[5]. Harbaugh, R., 2004. China’s high savings rates. The Rise of China Revisited: Perception and Reality, 18, p.12.

[6]. Hamnett, C., 2020. Is Chinese urbanisation unique?. Urban Studies, 57(3), pp.690-700.

[7]. Zhou, X. and Clements, S., 2010. The inflation hedging ability of real estate in China. Journal of real estate Portfolio Management, 16(3), pp.267-277.

[8]. Lean, H.H. and Smyth, R., 2014. Dynamic interaction between house prices and stock prices in Malay-sia. International Journal of Strategic Property Management, 18(2), pp.163-177.

[9]. Kakes*, J. and Van Den End, J.W., 2004. Do stock prices affect house prices? Evidence for the Nether-lands. Applied Economics Letters, 11(12), pp.741-744.

[10]. Batayneh, K.I. and Al-Malki, A.M., 2015. The relationship between house prices and stock prices in Saudi Arabia: An empirical analysis. International Journal of Economics and Finance, 7(2), pp.156-167.

[11]. Irandoust, M., 2020. The causality between house prices and stock prices: evidence from seven European countries. International Journal of Housing Markets and Analysis, 14(1), pp.137-156.

[12]. Ghysels, E., Plazzi, A., Valkanov, R. and Torous, W., 2013. Forecasting real estate prices. Handbook of eco-nomic forecasting, 2, pp.509-580.

[13]. Guo, F. and Huang, Y.S., 2010. Does “hot money” drive China's real estate and stock mar-kets?. International Review of Economics & Finance, 19(3), pp.452-466.

[14]. Engle, R. and Granger, C., 2015. Co-integration and error correction: Representation, estimation, and test-ing. Applied Econometrics, 39(3), pp.106-135.

Cite this article

Wang,K. (2023). Empirical Study on China’s House Prices. Advances in Economics, Management and Political Sciences,6,54-60.

Data availability

The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.

Disclaimer/Publisher's Note

The statements, opinions and data contained in all publications are solely those of the individual author(s) and contributor(s) and not of EWA Publishing and/or the editor(s). EWA Publishing and/or the editor(s) disclaim responsibility for any injury to people or property resulting from any ideas, methods, instructions or products referred to in the content.

About volume

Volume title: Proceedings of the 2022 International Conference on Financial Technology and Business Analysis (ICFTBA 2022), Part 2

Conference website: http://www.icftba.org
ISBN:978-1-915371-23-2(Print) / 978-1-915371-24-9(Online)
Conference date: 16 December 2022
Editor:Javier Cifuentes-Faura, Canh Thien Dang
Series: Advances in Economics, Management and Political Sciences
Volume number: Vol.6
ISSN:2754-1169(Print) / 2754-1177(Online)

© 2024 by the author(s). Licensee EWA Publishing, Oxford, UK. This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license. Authors who publish this series agree to the following terms:
1. Authors retain copyright and grant the series right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this series.
2. Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the series's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial publication in this series.
3. Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See Open access policy for details).