Interest rate affects the stock market nerves are large differences between happy or sad institutions.

<P> Historically, interest rates and stock markets have enjoyed significant "leverage effect." .Overall, rising interest rates, the stock market will fall; interest rates, the stock market will rise. .</ P> <P> first rate hike in May 15, 1993, the day the stock index plunging 69.86 points; July 11th, 1993 hike to the second maximum of 40.02 index points emerged .fall, two more rate hikes to make Shanghai the broader market in 3 months, fell rapidly from 1167.47 points to 777.73 points, or more than 30%. .</ P> <P> third rate hike in October 29, 2004, the day stock index fell 37.67 points up, eventually fell 21.20 points to close; the fourth time, March 17, 2005, the People's Bank raised the housing .lending rates, the biggest day of the Shanghai Composite fell 13.08 points, then the market 998 points toward the large end. .</ P> <P> However, the impact of interest rates on the market has tended to weaken in the year. .April 28 this year, financial institutions, lending rate, the day the broader market Tiaokongdikai 13.21 points, but then quickly upside to the final closing rose 23.49 points, which also opened the market in May rose a prelude to the Lord. .</ P> <P> State Investment Panmin Li Yi pointed out that the impact of interest rate news, the stock will break this week, finally established a short pre-equilibrium, the trend of choice. .</ P> <P> on Friday, the central bank announced interest rate 27 basis points, the stock market again touched a sensitive nerve, institutional differences for the afternoon tends to increase. .Some people believe that the formation of substantial interest rate on the stock market negative; But other people have pointed out that the interest rate not affect the pace of the market bullish. .</ P> <P> pressure on money supply and corporate earnings </ P> <P> interest rate has been one of the stock market as a major negative, because higher rates would attract away some stock funds. .Meanwhile, rising interest rates will also increase production costs, inhibit business needs and individual consumer demand, which ultimately affect the level of performance of listed companies. .</ P> <P> some market participants that interest rates will cause the stock market valuation levels. .In particular, the cumulative increase in the first half of the broader market higher, investors took the high case, raising interest rates in the short term the stock market will pose a negative impact of the recent stock market will be inhibited. .Experts emphasized that interest rates will inevitably cause some investors to the psychological impact, and further raise their expectations of increased macro-control, and has the potential to change the market outlook is expected to affect the holdings of investors .confidence. .</ P> <P> Southwest Securities researcher Zhang Gang said, to honor the formation of a wave of bad rebound, but the macro-control measures and the impact of tight monetary policies can not short-term end result will benefit from the investment to accelerate, significant increase in performance .upstream market position of listed companies is lower, cash caused institutional money down. .Judging from the rate hike, although there will be short-term bounce, but the medium-term impact on the stock market is negative..