IGNORING THE URGENT NEEDS OF THE REAL ESTATE MARKET BY CHINESE BANKS
IGNORING THE URGENT NEEDS OF THE REAL ESTATE MARKET BY CHINESE BANKS

Summary/Abstract: Purpose - The main purpose of this article is to demonstrate the growing gap between China's banking sector and the real estate market, and the emergence of rationality in their interaction. A related goal is to reveal the primacy of institutional reforms as a tool for solving problems of insufficient business financing. Research method - For the analysis of the dynamics of the real estate and banking services markets, the toolkit of the optimal portfolio is used. Manipulation of financial indicators is an attempt to vary the influence of the ratio of profitability and risk. To demonstrate the comparability of the results based on other methods, the ARIMA method was used. All the mentioned tools are implemented on the basis of Python packages. Results - At the moment, the problem of insufficient capital in the Chinese RE development market cannot be restored by the national stock market and an increasingly autonomous banking sector. At the same time, European stock markets still have a negative perception of Chinese business, which is reflected in the results of the investment portfolios. As the rules of the game (institutional environment) remain unchanged, there are no special prospects for the Chinese real estate development sector. Originality / value / implications / recommendations - The peculiarity of this study is the search for an alternative for the Chinese government in its attempts to resuscitate the declining dynamics of the economy through additional state injections. A change in approaches in the banking sector (at least a partial preponderance of the effectiveness of steps) suggests the possibility of institutional reforms. Application of software code and diversification of financial criteria demonstrate flexibility in approaches.

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