Category: Money tips Release Date: 2006-11-19
1. The impact of monetary policy on the stock market �monetary policy of the Government, one of the basic means of macroeconomic regulation and control. Due to social aggregate supply and aggregate demand in balance and the total money supply and money demand balance of the total complement, and therefore the focus of macroeconomic regulation and control must be based on money supply. Monetary policy aimed at regulating the money supply and control the start so as to realize such a stable currency, increase employment, balance of international payments, economic development and other macroeconomic goals. �/span>
Monetary policy on the stock market and the stock price impact of very large. Loose monetary policy will expand the total supply of money in society, for economic development and have a positive impact on stock market transactions. However, too much money supply will cause inflation, so that the development of enterprises are affected, so that the actual investment return rate has dropped. Tight monetary policy, on the contrary, it will reduce the supply of money in society is not conducive to economic development, is not conducive to an active stock market and development. In addition, monetary policy, the psychological impact on people is also very large, this effect on the stock market go up or down in turn generated a great boost. �/span>
2. The impact of fiscal policy on the stock market �fiscal policy is in addition to currencies other than the government control the basic means of macroeconomic another. Of its stock market impact is considerable. The following from the tax, treasury bonds discussed in two aspects: �/span>
(1) Tax �taxation is for the maintenance of its existence, to realize their functions by virtue of their political power to advance the standards set by law, compulsory land without compensation, fixed access to a means of financial income, but also nationals of the country to participate in a way of income distribution. National finance through taxation and structural changes of the total, you can adjust the size of portfolio investment and actual investment, social investment, curb expansion of aggregate demand, or to compensate for lack of effective investment demand. �/span>
The use of tax leverage to regulate the securities investors. The investment income earned on the securities investors of the requirements of different taxes and tax rates will have a direct impact on investors, the after-tax real income levels, and thus serve to encourage, support or inhibit role. In general, the enterprises engaged in securities investment proceeds of the tax rate should be higher than individual securities investment income tax rate, so that enterprises can promote the actual investment that is productive investment. Types of taxes on stock options also have an impact. Different stocks have different customers, investors in high tax levels are more willing to hold stocks with low yields, while the low tax levels and tax-exempt investors are willing to hold more high-yield stocks. �/span>
In general, the tax approval of more enterprises for the development of production and distribution of dividends less surplus funds, investors buy shares of the funds are used for less, so a high tax rate would have a negative impact on stock investments, investors their enthusiasm for investment will fall. On the contrary, low tax rates or appropriate tax relief for businesses and individuals can expand investment and consumption levels, thereby stimulating the development of production and economic growth. �/span>
(2) The bonds �is different from bank credit and government bonds as a financial credit adjustment tool. Government bonds on the stock market that it can not overlook. First, the debt itself, constitute the stock market, financial assets, an important part of the total. Bond's credit rating because of the high level of risk is low, if the large amount of treasury bonds will lead to stock market risk and lower the general level of earnings. Secondly, changes in bond interest rates rise and fall, seriously affecting the distribution and prices of other securities. When the national debt level of interest rates increase, investors will put money into a safe, income and high on the national debt. Therefore, the bonds and stocks are competitive financial assets, some or growth funds when the stock market is limited, too much debt is bound to affect the stock issuance and trading volume, resulting in stock prices.
