to the innovation and the entrepreneurial activity, producing a negative influence to the economic growth. Second, most important enterprises in China are state-owned enterprises. Close ties with local governments and state-owned banks make it easier to obtain capital without any financial constraints (Cull and Xu, 2005)  . Therefore, state-owned enterprises do not need to use the mortgage loan. Third, the collateral channel mechanism in China can’t play the role because of the financial market standards (for example, the controlling lending). Even if private companies are constrained by financing, they cannot get more loans through asset appreciation.
3. The Impact of Rising House Prices on the Productivity of Enterprises
Housing prices will not only affect the investment behavior of enterprises, but also further affect the productivity of enterprises output. Chen (2015)  found that the rise of housing prices is a vital factor that hinders the sustained and steady growth of economy in China. The reason is that high housing prices will lead to misallocation of resources, reduce the efficiency of resource redistribution and then reduce total factor productivity. Since 2003, as housing prices in China have risen rapidly, both the growth rate of total factor productivity and the efficiency of resource allocation have been declining. Based on the Chinese micro-industrial enterprise database from 2000 to 2007, Chen (2015)  found that house prices rose 1%, resource reconfiguration efficiency fell by 0. 62%, total factor production rate decreased by 0.45%. The high profit margin caused by high housing prices and the “Upside down” mechanism of total factor productivity is the important reason for the mismatch of resources and the reduction of resource allocation efficiency. Based on the database of China’s industrial enterprises, Lu Lingzhi (2016)  found that the rise in house prices would cause industrial enterprises to enter the real estate industry, resulting in the decline of industrial production efficiency. It verified the existence of investment crowding out effect and resource mismatch effect.
In theory, rising house prices change the price-ratio relationship between real estate and other goods and factors, increase the present value of real estate stock, expand the money supply and cause changes in the relative profit levels of the industries which have different degrees of connection with real estate. It will cause a cost effect, investment transfer effect, correlation effect, financing effect and distribution effect on industrial sectors.
3.1. Cost Effectiveness
Real estate is one of the important production factors of industrial enterprises. The rise of house price increases the cost of rent or purchase (Gao Bo, 2012)  , causes the price of land and building materials to rise (Liu Lin, 2013)  , increasing the cost of plant construction and increasing the cost of industrial enterprises. On the one hand, rising house prices raise the rent for industrial enterprises and increase the production and distribution costs of industrial products. On the other hand, rising house prices increase the cost of living in the labor force, resulting in higher wages. Rising house prices cause the monetary value of real estate to increase. In order to meet the increasing money supply for transaction demand and prevent demand, the money supply must be raised, which will cause the general price level to rise, increase the living expenses of the labor force, resulting in a further rise in labor wages and the labor cost of the industrial enterprises. Rising housing prices increase the cost of industrial enterprises from multiple dimensions and continue to erode the competitive advantage of China’s low-cost industries, inhibiting industrial output.
3.2. Investment Transfer Effect
The rise in housing prices has led to a rise in real estate investment returns, causing investment funds to real estate and closely related industries, leading to over-allocation of resources in the real estate sector, resulting in the transfer effect of industrial investment. First, the existing industrial enterprises investment funds will be affected by high returns. They will flow into the real estate industry in various forms like shareholding and borrowing, participate in the development of the real estate industry, and reduce the level of industrial investment. Second, the rapid rise in housing prices encourages industrial enterprises to hold more real estate in order to obtain high returns and squeeze industrial investment. Third, the rapid rise in house prices has changed the relative return on investment of the real estate sector and industry sector. As a result, the investment that originally flows into the industry has shifted to the real estate field. It is more and more difficult for the industrial sector to obtain external capital. The effect of investment transfer on industrial investment is unbalanced. The cycle of R&D investment is long and the impact is slow, so the effect in it is greater, Which will affect the innovation capability of industrial enterprises, make the capacity of industrial sustainable development weaken, and form a vicious circle that inhibits industrial output Continued growth.
3.3. Financing Effect
The Property prices have led to an increase in the nominal price of assets. The nominal scale of assets expands. Real estate as an important collateral for financing, its prices increasing have led to an increase in the value of collateralized corporate finance, increased the value of collateral for industrial enterprises, promoted corporate to use credit loans, given a premium on the liquidity of debt financing and reduced the financing costs, so it is helpful to alleviate the financing constraints of enterprises (Yu Wenjing, 2015; Luo Shikong, 2013)  . Rising home prices have led to higher profits for real estate and some closely related industries, increasing the profit opportunities by investing real estate. The real estate industry has a short cycle, quick profits and high returns. Compared with it, industrial investment lacks competitive advantage in the financing market, resulting in a raise in the financing cost of industrial investment and reduction in financing opportunities of industrial investment in the financial market. The rapid rise in housing prices will trigger the need to regulate the real estate market. The central bank will regulate the price level of the money market and the scale of credit, which will increase the cost of using capital in industrial enterprises and make it more difficult to get financing  .
3.4. Allocation Effect
Rising house prices have led to the expansion of asset size, increasing of money supply and higher general price levels. Since the increase speed of prices are unbalanced, the allocation effect is generated. Rising house prices are good for homeowners and real-estate holders, but bad for ordinary Working-class, especially for younger and less educated workers. Since marginal consumption of low-income earners is greater than that of high-income earners, the distribution effect reduces people’s demand for industrial products. The rise in house prices has led to an increase in the share of consumer spending. The speculative opportunities brought by the rapid rise in house prices have increased the share of spending on real estate, making consumers less able to pay for goods other than real estate and reducing demand for industrial products. Over a long period of time, housing prices in China monotonous rise. The maintenance and appreciation capacity of real estate are excellent, making it an ideal investment product. In the case of few domestic investment channels, the increase of individual investment in real estate will reduce the demand for industrial products, further strengthen the distribution effect and inhibit industrial output.
To sum up, while rising house prices can both boost the demand for industrial products and promote the growth of industrial output, they also raise the costs for industrial enterprises to use factors of production, squeeze out industrial investment and reduce the demand for industrial products. Under the influence of various forces, rising house prices generally have an inhibitory effect on industrial output.
4. Summary and Policy Recommendations
By combing the existing research at home and abroad, it is found that the rising house prices have adverse effects on the development of non-real estate enterprises such as cost effect, investment transfer effect, financing effect and distribution effect and so on. The unbalanced profit margins among industries attract capital to flow into real estate enterprises, and thus affect the innovative activities and production efficiency, resulting in a harmful effect on the stable and healthy development of enterprises. Obviously, the thought of trying to boost growth by pushing up prices is unhelpful. To build a long-term mechanism for steady and healthy development of the real estate market and to curb the trend of excessive housing price rise will be of great significance for adjusting the economic structure and promoting economic growth. In order to curb the adverse impact of rising prices on the development of enterprises, we can mainly consider and implement the policies as follows:
・ Effectively reduce the housing costs of middle-low income earners, new-employed, non-house workers and migrant workers. Government should be focus on the development of long-term public rental housing, and explore the development of housing subsidies from “subsidies in kind” to “monetary subsidies” in the form of vouchers and accelerate the promotion of common Property rights housing pilot reform.
・ Establish and perfect real estate collateral dynamic monitoring mechanism; Determine and adjust the upper limit of real estate collateral timely according to the economic cycle and risk status; Comprehensively and accurately evaluate the value of collateralized real estate, and further regulate and tighten the mortgage loan.
・ Control the inflow of credit funds into the real estate field; Set up a monitoring and early warning mechanism for real estate enterprises to invest in the real estate market; Supervise the capital status of the parent companies that have invested in the real estate industry; Prevent and stop the enterprises from using the main business loans for real estate investment.
・ Reform the fiscal and taxation system, adjust the fiscal-rights relations at the central level, and reduce the over-reliance of local governments on land transfer payments. At the same time, encourage enterprises to develop their own R & D capacity, increase the intensity of government R & D subsidies.
 Deng, B. (2014) The Impact of Real Estate Investment on Enterprise Innovation in Industrial Enterprises—An Empirical Study Based on the Data of Chinese Listed Companies. Economics and Management Studies, 10, 113-120.
 Brown, J.R., Fazzari, S.M. and Petersen, B.C. (2009) Financing Innovation and Growth: Cash Flow, Extetnal Equity, and the 1990s R&D Boom. Journal of Financial Economics, 64, 151-185.
 Yu, J.W., Wang, Y. and Tan, J. (2015) High Growth of House Prices and “Low-Tech Lock-In” of Enterprises—Based on the Micro Evidence of China’s Industrial Enterprises Database. Shanghai University of Finance and Economics, No. 5, 44-56.
 Zhang, J., Yang, L.X. and Fu, X. (2016) Does Real Estate Impede China’s Innovation?—An Interpretation Based on the Term Structure of Loans in the Financial System. Management World, No. 5, 64-80.
 Cull, R. and Xu, C.L. (2005) Institutions, Ownership, and Finance: The Determinants of Profit Reinvestment among Chinese Firms. Journal of Financial Economics, 77, 117-146.
 Lu, L.Z. (2016) Industrial Enterprises to Invest in Real Estate on the Productivity of Enterprises—A Case Study of China’s Listed Companies. Southwestern University of Finance and Economics, Chengdu, 1-62.