Analysis of Credit Risk in Real Estate Market of China and Preventive Measurements

The paper conducts an in-depth analysis of the Chinese real estate market credit violations, and proposes some targeted solutions. As the real estate market continues to heat up, commercial banks face a growing double risk. On one hand, due to the current lack of domestic financing channels commercial bank loans become a major financing means for real estate developers. On the other hand as housing demand grows, most commercial banks start to take on mortgage purchase of real estate. From the international experience, such a situation will easily cause excessive credit, or "dangerous bubbles", which leads to financial crisis. The paper brings forward some proposals on how to control the credit risk of the real estate market.