{"id":155,"date":"2020-04-23T23:36:18","date_gmt":"2020-04-23T15:36:18","guid":{"rendered":"https:\/\/52.198.56.191\/?p=155"},"modified":"2025-12-24T20:10:10","modified_gmt":"2025-12-24T12:10:10","slug":"shadow-banking-and-the-property-market-in-china","status":"publish","type":"post","link":"https:\/\/www.gssinst.org\/irer\/2020\/04\/23\/shadow-banking-and-the-property-market-in-china\/","title":{"rendered":"Shadow Banking and the Property Market in China"},"content":{"rendered":"\t\t
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Article<\/div>

Shadow Banking and the Property Market in China<\/p>

Author<\/p>

Start Page \/ End Page<\/p>

Volume<\/p>

Issue Number<\/p>

Year<\/p>

Publication<\/p><\/div>

<\/p>

Rose Neng Lai, Robert Van Order<\/p>

359 \/ 397<\/p>

22<\/p>

3<\/p>

2019<\/p>

International Real Estate Review<\/p><\/div>

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Abstract<\/p>


This paper studies the evolution of property values and the connections between shadow banking and property markets in China. We use Pooled Mean Group estimation to analyze Chinese house prices in 65 cities from 2007-2016, define the “fundamentals” of housing prices with the Gordon dividend discount model, and use lagged rents, prices, real and nominal interest rates, and shadow banking activity as short term explanatory factors. We find that the cities tend to share long run fundamentals and adjust relatively quickly to deviations from the fundamentals. We do not find bubbles; rather houses are like growth stocks with house prices rapidly chasing growing rents. More importantly, we find that house prices increase more quickly with the availability of shadow banking funds, which have grown rapidly.

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View PDF -https:\/\/doi.org\/10.53383\/100285<\/strong><\/a><\/p>

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Keywords<\/p>

<\/p>

Chinese Housing Market, Shadow Banking, Pooled Mean Group Estimation<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"

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Author<\/p>\n

Start Page \/ End Page<\/p>\n

Volume<\/p>\n

Issue Number<\/p>\n

Year<\/p>\n

Publication<\/p>\n<\/div>\n

\n<\/p>\n

Sean Brunson, Richard J. Buttimer Jr., Steve Swidler<\/p>\n

359 \/ 397<\/p>\n

22<\/p>\n

3<\/p>\n

2019<\/p>\n

International Real Estate Review<\/p>\n<\/div>\n

Keywords<\/p>\n

Chinese Housing Market, Shadow Banking, Pooled Mean Group Estimation<\/p>\n

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