(1) It is expected to have a greater impact on the short-term operation of the market. Obviously, raising interest rates is "negative" for the stock market and will have a greater impact on the operation of the market.

The impact and pressure of interest rate hikes on the market are mainly reflected in three aspects: First, the increase in deposit interest rates will directly lead to an increase in the yield of bank deposit funds and an increase in risk-free returns (excluding Inflation factors) will inevitably lead to the flow of stock market funds to banks, thereby reducing the supply of funds in the stock market and bringing adjustment pressure; second, the increase in loan interest rates will increase the financing costs of enterprises, affect their financing needs, and ultimately have a negative impact on the operations and performance of listed companies. causing a negative impact, its secondary market valuation will also be reduced accordingly; third, the rise in interest rates directly leads to an increase in risk-free capital costs, the stock market risk premium will inevitably rise, and the market's systemic valuation level will subsequently decline. The most direct indicator is The average price-to-earnings ratio recognized by the market has been reduced, which has brought about overall adjustment pressure on the market. In terms of industry impact, industries and companies with high RMB debt ratios and capital-intensive industries such as real estate, home appliances, electricity, papermaking, transportation, and construction machinery will suffer from increased financial burdens, which will affect their profit growth expectations.

Judging from the current trend of the stock market, the Shanghai Composite Index has repeatedly been blocked at 3,000 points. After repeated oscillations, it is currently in a relatively balanced pattern, and this interest rate hike is undoubtedly It increases the power of the short side and will break this balance, so a downward adjustment in the stock index will be inevitable.

(2) The long-term market operation will still maintain a volatile and upward trend. We believe that even if the market adjusts in the short term, it is only an adjustment in a bull market. This interest rate increase is a measure taken by the government to maintain the long-term and healthy development of my country's national economy. As the People's Bank of China considers the "four benefits": this increase in the benchmark interest rate of RMB deposits and loans of financial institutions is conducive to guiding money, credit and investment. Reasonable growth; conducive to maintaining the basic stability of the overall price level; conducive to the stable operation of the financial system; conducive to balanced economic growth and structural optimization, and promote the sound and rapid development of the national economy. Based on the economic development characteristics of major countries in the world, the cycle of raising interest rates is often when the economy is most prosperous. At this time, the economy is showing a momentum of rapid development. The purpose of raising interest rates is to suppress inflation, improve the quality of economic operations, and enable the economy to Continuous, stable and healthy development. The current situation in our country is also the same. GDP is growing rapidly, the inflation rate is at a low level, national tax revenue has increased significantly, and foreign exchange reserves have increased sharply. It has now become the country with the largest foreign exchange reserves in the world. Therefore, this increase in interest rates It is to ensure that the national economy operates with higher quality and more efficiency. From this perspective, this interest rate hike will be a "good thing" for the medium and long-term healthy operation of the stock market.

Judging from the current main factors affecting my country's securities market, my country's stock market will be optimistic in the medium and long term.

The basic completion of the share-trading reform, the improvement of the overall quality of listed companies, strong expectations for the long-term appreciation of the RMB, the continuous development and growth of institutional investors, the continuous entry of abundant funds into the market, and investors’ long-term expectations for my country’s securities market Confidence in healthy development will make my country's stock market optimistic in the medium to long term. In short, there is no doubt that my country's securities market is undergoing fundamental changes, and the market's endogenous forces are constantly increasing, which will push my country's securities market out of the shadow of the bear market and onto the track of a bull market.

It is currently the period when listed companies are publishing their annual reports in 2006, and the overall performance of listed companies has grown beyond expectations. The overall performance of listed companies in 2007 is still expected to maintain a high growth rate. The better performance of listed companies will form the strongest support for the good operation of the stock market.

So overall, this interest rate hike is still a small step of fine-tuning, and it has not changed the basic factors such as abundant market funds and the rapid rise in the overall performance of listed companies. Therefore, the interest rate hike will not change the long-term outlook for A-shares. Bull market.

(3) The investment strategy recommends interest rate hikes and further macro-control measures that may be taken in the future, which will have a certain impact on investors' psychology and is expected to put greater pressure on market operations in the short term. Therefore, it is recommended that investors maintain a relatively cautious investment strategy at present.

However, it is worth noting that since January 2007, large-cap blue chip stocks, mainly represented by Industrial and Commercial Bank of China, Bank of China, Baosteel Co., Ltd., and Sinopec, have begun to adjust. A rough estimate is that the overall adjustment of blue chip stocks has reached about 10%.

So in this sense, the market has already adjusted.

The recent rise in the index is mainly driven by the activity of low-priced stocks. It is expected that there will be little room for large-cap blue chip stocks to adjust significantly in the future. It is recommended that investors pay attention to large-cap blue chip stocks on dips. They will be the main force in the future market to truly break through 3,000 points or even higher. As for the low-priced stocks that have risen recently, especially the low-performing stocks that have no performance support and rely only on conceptual themes to speculate, we must keep a clear head. These stocks will have greater room for adjustment in the future.