The Relationships of Monetary Policy and the Real Estate Stocks Market

Abstract

Currently, with the rapid development of China, the real estate industry as the pillar of the Chinese economy and the scale of investment continues to expand. The rapid rise of real estate prices will cause the real estate bubble appears. The real estate industry is not only influenced by the supply and demand, also affected the national macro-control policies. This paper based on the previous studies and selects the monthly data of real estate stocks markets and money supply(M2) from January 2015 to March 2021. The study created Vector Auto Regression model (VAR1,4) and shows significant interaction between real estate stocks prices and money supply.