Dynamic Impacts of RMB Exchange Rate on Chinese Real Estate Sector Index

Abstract

As China's international influence increases, the influence of the renminbi in the international currency market is increasing. Some scholars have confirmed that to a certain extent there is a linkage between exchange rates and stock prices, but the relationship between exchange rates and the real estate sector is a topic that has not been explored in depth. With the acceleration of economic globalization, more and more international capital is targeting the Chinese real estate market, so the research is meaningful. In the empirical analysis part, this paper selects the data of the Shanghai Stock Exchange Index, the real estate sector index, and the RMB exchange rate against the US dollar within ten years as variables and makes a simple multiple linear regression model. Finally, it is concluded that RMB exchange rate has a significant impact on the real estate sector index at the level of 99.99%+.