Abstract:Enterprises are attracted by housing prices and invest in real estate business, which has a crowding out effect on the main business activities such as investment and innovation, and ultimately reduces the sustainability of the accounting earnings from the main business in manufacturing enterprises. Based on the financial data of Chinese A share listed manufacturing companies and housing prices data of 35 large and medium sized cities, the paper finds that the rise of housing prices significantly reduce the persistence of accounting earnings of manufacturing enterprises, and that the negative impact of housing prices on the earnings persistence of manufacturing enterprises has been reduced after the implementation of housing purchase restriction policy. The further research results show that in non technology intensive industries and non state owned enterprises, the negative impact of rising housing prices on the earnings persistence of manufacturing enterprises is more significant.