Financial risk analysis in the background of fluctuations in the real estate economy

The real estate industry is one of important pillar industries of our national economy. The real estate industry is also a fund intensity industry, and it is closely related to the financial system.. Fluctuations, as a property of the real estate economy, are bound to make an impact on the financial system, leading to great financial risks, and even to a financial crisis, if not under proper control or management. This paper probes into the cause and reasons for financial risks based on the analysis on loan risks involved in real estate development and mortgage risks related to housing purchase; this thesis also makes suggestions regarding policies whose purpose is to prevent financial risks.