Analysis of China’s Real Estate Industry and Banking Industry Based on NPL And China Real Estate Climate Index

This paper explores the relationship between real estate risks and banks through two sets of data: China Climate Index bank non-performing loans. Correlation analysis showed a moderate negative correlation factors, with correlation=-0.61333. The downside risk sector will be passed on to may trigger credit crisis for banks. From perspective developers, implementing three red-line financing policies China's enterprises has caused difficulties in financing. On buyer side, residents' expectations that prices would rise forever have reversed. Meanwhile, recurrence COVID-19 severely affected country's economy made future more uncertain. These common factors led downward pressure property sector. scenario poses challenge Chinese policymaking. must rescue while ensuring it does not overheat again.