The Research Of The Influence From Shibor To The Stock

The two great tools of the capital market are the stock market and thefixed income market. If the fixed income market could be fully developed,it is of great significance to the development of the entire financial marketand would further expand the investing as well the financing channeleventually.From2010upon, we have continually raised interests for severaltimes. These initiatives were thought to suppress domestic inflation, sothat to sustain the stable development of economics, and relieve thenegative interest rate situation. Recently, the stock market which hasexperienced the peak from the very beginning, is quite active. Does thereexist any relevant relationship between the change in both the markets? Isthe relationship between them obvious? What would happen to the stockmarket if the interest rate changed? Meanwhile, both the fixed incomemarket and the stock market have become more and more rational,standardized. The updates can also reveal the new relationships andresearches, this could feedback more efficiently about the correlationbetween each other.This essay will step from the analysis of the Shibor datas, through theresearches of theoretical background and the specific studies, with thetools of regression models, to analyse the relationship between interestrate and stock market, the influence on stock market when the interestrate floats, the linkage or the counteraction that the difference ofovernight data cause to the stock market, and conclude that the interestrate policy how to influence the stock market. The research resultcertificate that, even if there occured the great fluctuation, it can’t directlyreflect the close relationship as the news had reported, and hardly existsthe correlations of the curves. However, as the P-value is quite small fromthe regression models, I do the regressions again on the differencesbetween the prices from the close to the open of the stock, so the two mayexist some correlation in long term.