Abstract: A noticeable GARCH effect exists in the return rate of the real estate market and the stock market. Compared with the stock market，investments in the real estate are more risk-averse. During the sample period，whether in the real estate market or the stock market，the influence of good news to the market fluctuation is on average greater than that of bad news. In other words，there exists no evident leverage effect among the real estate market and the stock market in China. However，a mono-spillover effect exists among them，which means the fluctuation of the real estate market will give rise to that of the stock market.