Abstract: This paper uses the data of real estate companies in A shares between 2006 and 2009 to analyze the effect of government intervention and bank loan on the real estate. The paper demonstrates that the government intervention can reduce the degree of overinvestment of the real estate. Bank loan not only fails to restrain the overinvestment but also has a positive correlation with the overinvestment. Further research finds that the less the government intervenes, the more effectively the bank loan promotes overinvestment.