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of the exploitation and construction of real estate industry. Therefore, the change of land policy will have great impact on real estate industry. Land policy risks can be brought by the change of land ownership regulations, acquisition of lands such as public auction, bid and sale under agreement, land manipulation system, implementation of land policy and the like.
China has introduced positive land policy to encourage the development of real estate industry such as time limits use, charge of supply and circulation which has brought unexpected profits to investors at the beginning of open-up and reform in the 1980s. However, government will impose strict land policies to restrain the shooting increase of land prices and house prices when real estate bubble appears. Real estate investors will burden both positive and negative land policy risk so that they need to keep an eye on the change of policies directions.
Chinese government has launched permanent land regulation policies in 2006 since the tremendous increase in real estate prices since 2004, aiming to limit land supply and try to stabilize the uncontrollable increasing prices.
Moreover, the Chinese government became the only master on the treatment of agriculture and non agriculture land policy because only Chinese government decide which agricultural land can not be introduced into the real estate industry directly. Agricultural lands’ brought into real estate lands has caused many social problems like disordered distribution, government corruption problem in government and very unfair compensation to farmers so that government attempts to change this situation.

4.1.3.2 Housing policy risk

Real estate invest corporations also exposed themselves to the risks of changing housing policy. Chinese government has allotted houses to residents before the 1980s, when the stage was considered as the dark age of the Chinese real estate market because there were no demands for property market. Then Chinese government has introduced market mechanism to the economy and changed the policies placed on real estate market and cancelled government planning and central control. The role of Chinese government has then changed to support real estate development rather than directly control, although the government still impacts the Chinese real estate market indirectly, for example, by creating the subsidiary development companies under its control (Zhang Xingquan, 2000).

4.1.3.3 Financial policy risk

Financial policies, which include the changes of interest rates, inflationary rate, liquidity, policies on invest funds and financial products such as mortgage and the like, will also bring profits or cause losses to real estate corporations.
It is beneficiary to real estate corporations if interest rate can decrease due to the low cost of obtaining more funds to invest in the market.
Take the financial policy changes from 2007 to 2008 as an example. The prudent monetary policy which has been adopted in 2007 has been transformed to tight monetary policy in 2008. It was the first year of adopting tight monetary policy after 10 years of expansionary monetary policy. This unexpected changes have brought tremendous losses and changes to real estate corporations.
It has been found that The Chinese government has raised the interest rates of loans and savings six times and the deposit reserve rate 本论文由英语论文网提供整理，提供论文代写，英语论文代写，代写论文，代写英语论文，代写留学生论文，代写英文论文，留学生论文代写相关核心关键词搜索。