The Impact of Three Red Lines Policy on China’s Real Estate Industry

Abstract

This paper seeks to comprehensively investigate the extent to which the Three Red Lines Policy has affected the real estate industry. The Three Red Lines policy are financial regulatory guidelines in China introduced in August 2020To figure out the impact of the Three Red Lines Policy, this paper studies the intentions of the policy, a case study on the comparative stock price changes of Vanke and Evergrande and predicting the future stock changes of Vanke through python, and an analysis of how property companies change. The findings suggest that the policy has cooled down the overheated property market, and because it limits the debts to the real estate sector, it has also changed the development trends of the industry. The Three Red Lines Policy would have a profound impact on the future development of the real estate industry.