Seemingly Unrelated Stock Market and Housing Market in China -- a Myth or Truth

UM > Faculty of Business Administration > DEPARTMENT OF FINANCE AND BUSINESS ECONOMICS

Status	已發表Published
	Seemingly Unrelated Stock Market and Housing Market in China -- a Myth or Truth
	Huang, B. H.; Zhang, Y.; Lai, N.
	2013-12-01
Source Publication	Proceeding of International Conference on Industrial Upgrading and Sustainable Economic Growth in China
Publication Place	Guangzhou
Publisher	Jinan University
Abstract	Real estate markets and stock markets in Asia are believed to perform hand-in-hand as investment alternatives. Whether this is a myth or truth can have significant implications to policy makers for stabilizing the markets, and to investors for better investment portfolio choices. We examine the impact of stock market movements on housing price dynamics in China using both national and city level data from 1997 to 2012. With the Pooled Mean Group (PMG) analysis accounting for heterogeneity across 35 cities, the empirical results indicate the existence of long-term unidirectional causality from the stock market to the housing market. However, stock market price could hardly explain housing price movements in the short run, after controlling for factors such as income, rent, and monetary measures. The long run positive impact of stock market performance on housing price supports the existence of wealth effect between the equity and property markets in China; the deviation in co-movement appears to be only a short run phenomenon.
Keyword	housing price dynamics stock market price pooled mean group estimation China
Language	英語English
The Source to Article	PB_Publication
PUB ID	11384
Document Type	Conference paper
Collection	DEPARTMENT OF FINANCE AND BUSINESS ECONOMICS
Corresponding Author	Huang, B. H.
Recommended Citation GB/T 7714	Huang, B. H.,Zhang, Y.,Lai, N.. Seemingly Unrelated Stock Market and Housing Market in China -- a Myth or Truth[C], Guangzhou:Jinan University, 2013.
APA	Huang, B. H.., Zhang, Y.., & Lai, N. (2013). Seemingly Unrelated Stock Market and Housing Market in China -- a Myth or Truth. Proceeding of International Conference on Industrial Upgrading and Sustainable Economic Growth in China.

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