Empirical Analysis About The Influence Of The Deposit Reserve Policy Adjustment On The Chinese Listed Banks Stock Price

It is a hot and difficult issue about how to make a scientific and objective measure ofmonetary policy effecting on stock market of our country.Scholars at home and abroad havedone a lot of research on the impact of monetary policy on stock market. In September17,1983,People's Bank of China exclusively began to exercise the functions of the central bank, and thedeposit reserve system was also established, gradually becoming one tool of the monetary policyto make the macroscopic readjusting and control. Statutory deposit reserve rate adjustment willbring the multiplier effect and cause the money supply increase (decrease), whose policy effectis very strong. China's central bank has frequently used the tool, and its frequency andamplitude is rare in history.Over20years,the statutory deposit reserve ratio of the Central Bankhas adjusted several times. From January2007to June302011China has adjusted legaldeposit reserve rate for30times, reaching21.5%, a record high.At the same time, China's stock market also experienced a wide range. With theestablishment of Shanghai stock exchange in December19,1990and the Shenzhen stockexchange in July3,1991, our stock market was built. During20years, China's stock markethas developed very well.Since2006, the stock market has a big fluctuation.About October2007, the Shanghai Composite Index from1200points in early2006reached an all-time high,6024.04points. The Shenzhen stock exchange also hit a record high,19600.03points. In2008,with the United States sub-loan financial crisis spreading the world, China's stock market hadbeen hit seriously.Just in one year, the Shanghai composite index was only1602.4points.Adjustments of central bank deposit reserve rate will directly have an influence on thecommercial bank credit funds and make all the bank's credit forced to expand or contract. Theexperience of data shows that, it will freeze the liquidity of commercial banks about400000000000yuan when the deposit reserve rate increases by0.5%. As a stock market indexand one of the main banking sector, there will be a big influenceon the whole stock market. So itis necessary to analyze impact of the deposit reserve policy adjustment of listed bank stock price.The banking sector and real estate capital intensive industry is affected deeply by the policy,therefore, this paper selects a specific industry sector (banks) to carry on the research, whosedirection will be deeper and more specific. This article is divided into six chapters to carry on.Main ideas will be transmitted through a combination of theory and practice, quality and quantity.Observing the relationship between them on the basis of analyse about conclusion and causes. The article will put forward four suggestions: the monetary policy, listed banks, stock marketand investors.