Impact of Short-Term International Capital Flows on Interactivity of Stock Market and Real Estate Market in Chinese First-Tier Cities: A Viewpoint of “Co-Selling Effect”

摘要

This paper offers a new prospect of interactivity of stock market and real estate market, it is found that not only the fundamental factors have impact on this,>> style="font-family:""> style="font-family:Verdana;"> style="font-family:Verdana;"> style="font-family:Verdana;">but the non-fundamental factors like short-term international capital flows play an important role in it. This paper tests the impact from short-term international capital flows on interactivity of stock market and real estate market by using dummy variables describing market conditions based on the “Co-Selling Effect” theory, the results show that the “Co-Selling Effect” does style="font-family:Verdana;"> style="font-family:Verdana;"> style="font-family:Verdana;">exist style="font-family:Verdana;"> style="font-family:Verdana;"> style="font-family:Verdana;"> when market condition is bad, but this phenomenon could not be observed when market condition is good. This point is consistent with the classic theory.