The Resarch Of Shibor’s Status As The Benchmark In Our Money Market

Finance is the core of modern economy. Interests rate, as a measure of financial asset prices,play an irreplaceable role in the allocation of resources in the financial markets. Since reform ofopening up, the financial system of china have experience significant development. Restrainfrom the government on the financial market are increasingly relaxed. Financial are more andmore market-oriented. January4,2007, in order to regulate the money market benchmarkinterest rate formation mechanism, cultivate China’s money market benchmark interest ratesystem, in reference to Libor, Hibor, and Sibor international financial markets, the benchmarkinterest rate system based on the central bank introduced of Shibor.This article analysis Shibor form the respect of its background, reviews the history andcurrent situation of China’s marker-oriented interest rate reform, described the necessity ofbuilding the benchmark interest rate system. Base on previous research results, the writer givethe standard of choose the benchmark interest rate from the angle of market informationreflection and monetary policy transmission. Take international experience as a reference, thewriter compare some representative interest rates with Shibor, use qualitative and quantitativemethod analyses Shibor with form pricing mechanism, usage in the marked and its operationeffect.Base on the analysis, the study found that Shibor currently show some characteristics as thebenchmark of money market, but it still has some weakness in its pricing mechanism, and therelation with some macroeconomic variables, etc. Base on the study, the writer give hisrecommendations in how to reinforce the benchmark of Shibor in Chinese financial such asimprove the pricing mechanism; construct China’s credit system and so on.