Abstract: In this paper, we use the micro data of investment and stock price of listed real estate enterprises from 2004 to 2012 to test for stock-land interaction mechanism. The main conclusions of this paper are as follows. The behavior of land investment has a significant positive impact on the stock price，and after 1-2 quarters，real estate investment will significantly increase. Significant difference emerged in the performance of state-owned enterprises and the non-state-owned in the stock-land interaction. The development of China's real estate market is highly correlated with the expectations of the market participants, instead of interest rate controls and restrictions of its own funds, so the macro control policy to real estate market is invalid from the perspective of financial regulation.
Keywords：Real Estate, Financial Market, Land Investment, Stock-Land Interaction
source:Finance & Trade Economics ,No3,2014