Early Warning System for Financial Risks in the Real Estate Market of China on the Basis of BP Neural Network

Abstract

Preventing risks, especially real estate financial risks, is a very important issue that cannot be ignored. We should take timely measures to identify early warn risks and prevent real estate financial risks as soon as possible. Based on BP neural network, this paper selects 15 indicators related to risks from macroeconomic level, the real estate financial level and the real estate industry level, and constructs an early warning model of real estate financial risk in China. Combining with ARMA (1,1) model, this paper forecasts the value of relevant risk factors from 2019 to 2021, and carries out the early warning of China’s real estate financial risks.