Examining the integration of real estate into financial assets: A critical analysis of China's regulatory framework for nonreal estate corporations

This study explores the integration of real estate into financial assets within the context of China's regulatory framework for nonreal estate corporate listed companies (NRELCs). The purpose is to assess the impact of NRELCs' involvement in the real estate market on housing prices as influenced by monetary policy. The need for a solution is driven by the significant role of real estate in China's economic strategy and the challenges posed by speculative investments. Utilizing a mixed-method approach, this study employs empirical models to analyze data from 2007 to 2018. The key findings indicate that NRELCs' entry into the real estate market significantly stimulates housing prices, with monetary policy acting as a critical driver. The interaction between credit expansion and NRELCs' real estate activities exacerbates price fluctuations. Our findings highlight the necessity of controlling the financial attributes of real estate and suggest regulatory measures to curb speculative demand. The potential impact includes informing policy decisions to stabilize the housing market and promote sustainable economic growth.