Correlational Study On The Relationship Between Interest Rate And Stock Price Index

With productivity and the development of commodity economy, the stock market gradually produce and develop rapidly. The development and expansion of the stock market to economic development have a significant influence. It can help enterprise through the financing to expand its reproduction. Can optimize the allocation of resources and improve enterprise’s production efficiency. And can help residents savings into investment. The actual economic activity, the stock price were influenced by a series of factors including economic growth, and money supply, interest rates, commodity price index, financial revenue and expenditure, and inflation. In these factors, the interest rate influence the share price most quickly and directly. This study is helpful for the relationship between the capital market and monetary market interaction, and its effect can be optimized, and promote the healthy development of the national economy. This paper selects1995-2010years of share price and interest rate changes related data, from the long-term and short-term two Angle to study the relationship. Empirical analysis results show that in the long term interest rates and stock index is negative correlation relationship, and in the short term is obtained and the theoretical relation not consistent positive correlation.This paper includes five chapters. The first chapter presents the research background and significance, the domestic and foreign research situation carries on the elaboration, and introduces the research content, the research thought and innovation points; The second chapter presents the relevant theories of interest rate and stock price, first of all from pricing theory and value theory two aspects between the theoretical relationship is negative correlation. Second is to introduce the influence of interest rate on share price way. In the final analysis, share price were influenced by the interest rates in the long-term and short-term; The third chapter is the focus of this paper, from the long-term and short-term angles and related data carried on the real diagnosis analysis, the results showed that in the long run they are negative correlation between the results and theoretical consistent. In the short term they are positive correlation between those two relations, the result is a departure from the theory and phase that short-term stock income influenced by other factors. According to the previous chapter empirical results, the fourth chapter analysis reasons and gives relevant policy recommendations. The fifth chapter summarizes the full text, and put forward to the further questions.