Empirical Study On SHIBOR Further Developing As Benchmark Interest Rate In The Money Market Of China

This paper starts from the definition of the benchmark interest rate, and with the reference to the general principles and selection experience of the benchmark interest rate of the international money market, deeply analyzes the basic framework, the introduction meaning and role of SHIBOR, and focuses on the empirical study of the operation of SHIBOR from January 4,2007 to December 31, 2010, including the correlation analysis between SHIBOR and other money market interest rates, the correlation analysis between SHIBOR and the main macroeconomic indicators, and reveals that SHIBOR has initially established the status of the benchmark interest rate, and gives suggestions of SHIBOR’s further development and improvement.This paper is divided into six chapters:The first chapter is the preface of the paper, which introduces the research background and significance, literature review, research ideas and methods.The second chapter briefly introduces the interest rate and interest rate system, and then explains the definition of money market interest rate. With references to many scholars’views of the benchmark interest rate, the author gives her own understanding of the definition of the benchmark interest rate, which lays the theoretical foundation for the later chapters.The third chapter describes the main principles and international experience of establishing the benchmark interest rate on the money market. General principles for selecting benchmark interest rate and the establishment experience of the developed countries are both the conditions of SHIBOR becoming the benchmark interest rate of our country’s money market and also important criterion for testing SHIBOR as the benchmark rate. This provides a clear guiding principle for qualitative and quantitative analysis of SHIBOR on the later chapters.Chapter IV introduces the basic framework of SHIBOR, and analyzes its far-reaching significance and the great roles of being the benchmark interest rate in our money market, which is the prerequisite and basis for cultivating SHIBOR, and also help to understand the necessity and importance of SHIBOR being the benchmark interest rate.ChapterⅤbriefly describes the operation of SHIBOR at the beginning, and then combining with guiding principles for the benchmark interest rate on the second chapter uses a quantitative method to analyze SHIBOR, and reveals that after three years’operation SHIBOR has initially established the status of the benchmark interest rate.ChapterⅥgives some countermeasures and suggestions of further developing SHIBOR as the benchmark interest rate according to the above qualitative and quantitative analysis conclusions.