Empirical Study on Influences form the Appreciation of RMB on Urban Housing Prices in China: A Case Study of Beijing

摘要

The currency appreciation will usually lead to the increase and inflation in domestic asset prices, or even a serious real estate bubble. Thus it is important to study relationship between appreciation of the RMB and real estate prices in order to determine the correlation between both of them. This paper takes Beijing as an example, to select variables such as Beijing Hedonic index, exchange rate of the RMB against the dollar, the Shanghai stock index, using co-integration analysis, error correction model to validate relationship between appreciation of RMB and house price. Finally, we put forward suggestions for China's exchange rate reform as well as countermeasures for macro adjusting of China's real estate industry in the context of the appreciation of the RMB.