Performance Evaluation of Real Estate Equity Investments in China

Abstract

This thesis is focused on real estate investment in China. After reform and opening up, the government has taken growth of GDP as an important aim. When the natural growth rate of the economy is lower than the declared target growth rate, the huge political inertia will force the government to intervene in the market, at the expense of resource mismatch to push GDP to achieve the goal. Especially in the thirty years after the marketization of real estate, the real estate industry in China has greatly improved the housing, consumption and urban landscapes of the huge population in China. It brought up about 60 industrial developed and have a significant impact on the Chinese economy and caused the high growth speed of houses’ price. With the competition is becoming more fierce, it is necessary to evaluate the current condition of real estate equity investment in China and if the property bubble will break in the future. The objective of the work is examining the changes in real estate equity investment performance across fifty selected real estate companies in China over the period 2000-2017. This thesis attempts to investigate how stocks of companies in real estate performed before financial crisis (2000-2008) and after crisis (2008-2017).