The Empirical Study on the Relationship between the Stock Market and the Real Estate Market in China

As the important investment objects, the frequency and severity of fluctuation in the real estate market and the stock market shall have a great influence on the entire capital market, which plays an vital role in the economic development and livelihood issues. Therefore, it is of theoretical and practical significance to study the correlation of price fluctuation between the two markets. This study selects the Shanghai composite index in the stock market and monthly sale of commercial residential building in the real estate market, and the data interval is from 2006 to 2015. Then, we make statistical characteristics analysis and stability test for data with Eviews software. In order to make linkage study for prices in the real estate market and the stock market, we conduct the test of the relevance between the two markets by Granger causality test and VAR model. At last, we put forward relevant suggestions for existing risks and problems in the development process of Chinese real estate market and stock market.