The Adjustment Of Lending And Deposit Rates’ Impact On Stock Prices In Our Country

In China stock market from scratch, from immature to gradually improve, especially thereform of non-tradable shares, removed the biggest obstacle of the development of stock market. Inmore than20years, the environment and the system construction of the stock market has achievedrapid development, gradually became the good tool to reflect the status of the macro economicoperation. The stock market not only brought wealth to investors but also brought huge losses, alsothe ups and downs of its own development process. Today the stock market as the core of the capitalmarket in China and the main investment and financing places, its importance to economicdevelopment is becoming more and more obvious. The development of the stock market except bysome basic factors also influenced by national monetary policy. Lending and deposit rates as ourcountry important monetary policy tools has be adjusted many times.The impact of theseregulations to the development of the stock market and the change of stock price impact is worthattention. In this paper, the research is focused on lending and deposit rates affect stock prices.Although in theory, the relationship is negative correlation between them, but the granger causalitytest of the interest rate adjustment range and the adjustment of the next day and the seventh dayshare prices shows that there is no causal relationship between them. This is mainly caused byspecial financial environment in China, so on this basis, the conduction of our deposit and lendingrates and the perfection of the whole financial market and the stock market of perfect puts forwardsome Suggestions, hope that through the efforts to make the deposit and lending rates that monetarypolicy tools to play its proper role, the stock market can reflect the effect of the policy in time,provide effective basis for the central bank policy.