Chinese Real Estate Industry Faces Increased Financial Risk Due to Price Fluctuations.
The study looked at the financial risks in China's real estate industry. They used a method called contingent balance sheet analysis and data from real estate companies. The study found that the risk in the real estate industry increased in 2001, but improved after 2009. The real estate price bubble index doesn't accurately show the industry's risk. The risk is influenced by real estate prices and bank credit. To keep the real estate industry stable, prices should be neither too high nor too low.