| Author | Ding, Guoyu |
| Call Number | AIT RSPR no.SM-07-10 |
| Subject(s) | Real estate business--Risk assessment--China
|
| Note | A research study submitted in partial fulfillment of the requirements for the degree of
Master of Business Administration |
| Publisher | Asian Institute of Technology |
| Abstract | Since the three phases housing reform policies been carried out, the real estate industry is
liberated from the total welfare system in planning-economy era and enter a new time of
privatization and commercialization. Following the process of implementation of the
housing reform, especially the one launched in 1998, the real estate industry emerged from
a neglectable sector has grown into the pillar of Chinese economy. Generally speaking, in
terms of floor space, quality of the building and property related services, the housing
conditions of Chinese urban residents have improved significantly. However, problems
accompanied with the development of real estate industry also accelerated to an alarming
extent in these years. The coexistence of skyrocketing housing prices and unusual high
vacancy rate of residential building traps the government in dilemma. Through data
analysis and comparison with international standards, the paper comes to the conclusion
that the financial risks existing in real estate sector poses a severer threat to Chinese
economy. The potential real estate bubbles crash will leave bankruptcy of considerable
number of real estate developers and households borrowers and even commercial banks
since over 60% capital of real estate investment are borrowed directly or indirectly from
state-owned banks. Overheated investment and irrational housing price will never be
settled if the central government cannot ensure the macro control policies are implemented
by the local governments without any discount. If the current risky financial situation in
real estate industry is properly managed, there will be a bright future for Chinese real estate
industry with enhancement of urbanization. If central government's macro control
measures fail, crash of real estate bubbles will lead to financial difficulty hence put a heavy
load on the whole economy. |
| Year | 2007 |
| Type | Research Study Project Report (RSPR) |
| School | School of Management (SOM) |
| Department | Other Field of Studies (No Department) |
| Academic Program/FoS | Master of Business Administration (MBA) (Publication code=SM) |
| Chairperson(s) | Tang, John C. S.; |
| Examination Committee(s) | Sununta Siengthai ;Zimmermann, Willi; |
| Scholarship Donor(s) | Government of China; |
| Degree | Research Studies Project Report (M.B.A.) - Asian Institute of Technology, 2007 |