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Chinese housing market and bank credit

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  • Sakuragawa, Masaya
  • Tobe, Satoshi
  • Zhou, Mengyuan

Abstract

This paper presents an empirical analysis of the determinants of housing prices using the province-level panel data that covers all the regions in China for the period 1999–2015. The bank credit is the primary determinant of housing prices. Remarkably, a one-percentage-point increase in the growth of bank credit leads to a subsequent appreciation in the growth of the housing price by 0.281 %. The sensitivity of bank credit varies across subcategories of buildings, and between the province-level analysis and the city-level analysis.

Suggested Citation

  • Sakuragawa, Masaya & Tobe, Satoshi & Zhou, Mengyuan, 2021. "Chinese housing market and bank credit," Journal of Asian Economics, Elsevier, vol. 76(C).
    • Handle: RePEc:eee:asieco:v:76:y:2021:i:c:s1049007821000907
    DOI: 10.1016/j.asieco.2021.101361
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    Cited by:

    1. Wan, Junmin & Qiu, Qiqi, 2023. "Industrial investments and housing prices in China," International Review of Economics & Finance, Elsevier, vol. 84(C), pages 832-852.

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    More about this item

    Keywords

    Housing price; Bank credit; Panel GMM; Chinese economy;
    All these keywords.

    JEL classification:

    • E5 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit

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