An Empirical Study on the Relationship between Chinese Interest Rate and Stock Price

DOI

10.2991/isbcd-18.2018.14How to use a DOI?

Keywords

interest rate; Ock price; relationship

Abstract

As economy and society improves rapidly, the strength of a country is inseparable from the development of the financial industry. As an important regulatory tool for monetary policy, the interest rate level affects investors' demand for stocks, and on the other hand, it reflects the fluctuations in the stock prices that affect listed companies. The main aim is to study the relationship between interest rate changes and stock price. First of all, from theoretical perspective, reviewing the factors that affect the stock price fluctuations. Then, analyzing the effect of interest rate changes on stock price through a great number of literature references. Finally, empirical studies are conducted through quantitative research to discuss the correlation between Chinese stock and interest markets. The conclusion indicates that there is a positive correlation between stock prices and interest rates in the short term. In the long term, interest rates and stock prices express a negative relation, which is consistent with the previous research results. Compared with the development trend of foreign stock markets, the stock market in China is not standardized and effective. Therefore, the study concludes with some suggestions for improving the effectiveness of the stock market.

Copyright

© 2018, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Xiaojiao Ye
AU  - Ziling Huang
PY  - 2018/10
DA  - 2018/10
TI  - An Empirical Study on the Relationship between Chinese Interest Rate and Stock Price
BT  - Proceedings of the 3rd International Symposium on Asian B&R Conference on International Business Cooperation (ISBCD 2018)
PB  - Atlantis Press
SP  - 66
EP  - 71
SN  - 2352-5428
UR  - https://doi.org/10.2991/isbcd-18.2018.14
DO  - 10.2991/isbcd-18.2018.14
ID  - Ye2018/10
ER  -