Selection Of China's Financial Markets, The Benchmark Interest Rate

At present, the structure of our country financial market interest rate system is still a two-track system which is composed of the state rate and the market rate. Until now, the system has not yet forms its benchmark interest rate. Since Shibor was promoted in 2007, it has become lots of financial products' benchmark, for its marketability, robustness and basis.This article begins with benchmark interest rate's definition and its attributes, and then studies Shibor's performance of pricing other financial products, the rationality of its interest rate. Further, this article compares Shibor with other important interest rates. After profiting from the standard and experience of how western developed financial markets choose its benchmark, this article form the final conclusion: choose Shibor as our country financial market's benchmark. In the end, according to some problems Shibor faced, this paper will also propose some solutions.