k-capital cost rate, expressed as a percentage; Capital cost rate English is The cost of capital rate. Because the pronunciation begins with k, it is represented by K.
1. Interest on capital
Interest refers to the use fee of money in a certain period of time, which refers to the remuneration that money holders (creditors) get from borrowers (debtors) for lending money or monetary capital. Including deposit interest, loan interest and interest incurred by various bonds. Under the capitalist system, the source of interest is the surplus value created by hiring workers. The essence of interest is a special transformation form of surplus value and a part of profit.
the amount of interest depends on three factors: principal, deposit period and interest rate level.
the calculation formula of interest is: interest = principal × interest rate× deposit period
According to the provisions of State Taxation Administration of The People's Republic of China Guoshuihan [28] No.826, personal income tax on savings deposit interest is temporarily exempted from collection since October 9, 28, so the interest on savings deposits is temporarily exempted from interest tax at present.
second, the impact of interest on the stock market
1. Cancel or reduce the interest tax
At present, the real interest rate of savings is negative. In order to reduce the diversion of residents' savings to the stock market, although the adjustment of interest tax is bad news for the stock market in theory, it is not entirely true.
First of all, even if the interest tax is completely abolished, it will only be equivalent to an increase of .6 percentage points in the interest of banks, and the annual interest income of 1, yuan deposits will increase by 612 yuan, which is almost "negligible" compared with the rate of return on investment in the stock market.
the adjustment of interest tax has not increased the loan cost of enterprises and has no negative impact on the operation of listed companies. However, it has a positive effect on the listed companies of banks.
2. Increasing the interest rate on bank deposits
There is an obvious "leverage effect" between the interest rate and the stock market, which will affect the increase or decrease of the stock market and the amount of bank funds. However, the rise of interest rate will increase the production cost of enterprises, restrain the demand of enterprises and personal consumption, and ultimately affect the performance level of listed companies.
to raise interest rates is to increase the capital cost of investing in the stock market. Raising interest rates by banks and raising the interest rate of government bonds are generally complementary. If the risk-free rate of return in the market increases, it will also affect the risk-free rate of return in the stock market.
However, judging from the current range and space of interest rate increase in China and the development status of China stock market, the core question of whether residents' savings can be attracted to the stock market is how profitable and safe the stock market is. That is, if the investment benefit of the stock market is higher than the income of bank deposits compared with its safety benefit, the choice of the stock market will be the main reason for the diversion of savings.
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