Market interest rate refers to the interest rate determined by the relationship between supply and demand in the capital market. Market interest rates often change due to changes in supply and demand in the capital market. When the market mechanism plays a role, the supply and demand of credit funds will gradually tend to balance due to free competition. Economists call this state of market interest rate "equilibrium interest rate".
The official interest rate corresponds to the market interest rate, and the so-called official interest rate refers to the interest rate set by the monetary authorities. The monetary authority can be a central bank or a government department with actual financial management functions. Before the implementation of the reform and opening-up policy, the interest rate in China was basically the official interest rate.
In the process of reform and opening up in recent 20 years, with the changes in capital allocation and financing pattern, the proportion of market interest rate in the interest rate system has gradually increased. Official interest rate and market interest rate analyze the interest rate form from the perspective of capital price determination.
In fact, under the background of unifying the official interest rate, the market interest rate will take many forms, which are determined by various financing forms, unbalanced economic development of a country, market segmentation and other factors. For example, in China, there is a considerable gap between the economically developed coastal areas and the economically backward central and western regions.
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Among all the factors that affect the stock market and share price, the most acute one is the financial factor. Among the financial factors, the change of interest rate level has the most direct and rapid impact on the stock market.
Generally speaking, interest rates fall and stock prices rise; When the interest rate rises, the stock price will fall. Therefore, the level of interest rates and the relationship between interest rates and the stock market have also become an important basis for stock investors to buy and sell stocks. ?
1, production scale
Rising interest rates will not only increase the company's borrowing costs, but also make it difficult for the company to obtain the necessary funds. In this way, the company has to reduce the production scale, and the reduction of production scale will inevitably reduce the company's future profits. As a result, the stock price will fall. On the contrary, the stock price will rise.
2. Discount rate
When the interest rate rises, the discount rate of investors' evaluation of stock value will also rise, so the stock value will fall, and the stock price will also fall accordingly; On the contrary, if the interest rate falls, the stock price will rise.
3. Inventory demand
When the interest rate rises, some funds will shift from investing in the stock market to saving banks and buying bonds, which will reduce the market demand for stocks and make the stock price fall. On the other hand, when the interest rate falls, the profitability of savings decreases, and some funds may flow back to the stock market, thus expanding the demand for stocks and making the stock price rise.
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