Bank lending is actually the weather vane of short-term interest rates and the most authentic reflection of the entire liquidity situation. The higher the lending rate, the greater the lack of money in the market; the trading variety represented by 204001 on the Shanghai Stock Exchange is a typical example.

Theoretically speaking, there is no doubt that the impact of interest rates on stocks is negatively correlated: when interest rates rise, stocks will basically fall. Logical relationships are available online, and the simple description is roughly as follows:

1. Rising interest rates lead to rising corporate costs, economic development is hindered, and the stock market falls

2. Rising interest rates lead to weak risk appetite Investors switched from stock trading to bank savings

Different from the central bank's guidance interest rate adjustments, changes in inter-bank lending rates are not always accurately reflected in the stock market. For example, in November this year In the middle of the month, interest rates and stock indices rose simultaneously; but if inter-bank interest rates rise sharply, I bet sensitive stock investors will first reduce their positions to cope with unknown sudden changes and avoid risks.

Extended information:

The lending rate indicates the interest rate at which banks are willing to borrow; the lending rate indicates the interest rate at which banks are willing to lend. One bank's lending (borrowing from other banks) is actually another bank's lending (providing loans to other banks). Comparing the borrowing and lending rates of the same bank, the lending rate (Bid Rate) is always less than the lending rate (Offered Rate), and the difference is the bank's profit.

Raising the inter-bank lending rate will lead to a reduction in inter-bank borrowing, which means a reduction in lending funds. The decrease in borrowing funds is not conducive to the financing of funds. If it is beneficial, an appropriate increase in interbank interest rates can increase income for banks with relatively sufficient reserves, but for banks with insufficient reserves, that is, those banks with low capital adequacy ratios, it will expand expenditures.

Baidu Encyclopedia-Interest Rate