What Is Net Interest Revenue?

Interest income refers to the income provided by an enterprise to others for use but does not constitute an equity investment, or income derived from the use of the company's funds by others, including income from deposit interest, loan interest, bond interest, and interest on arrears. Interest income is recognized on the date the debtor pays interest as agreed in the contract. ^[1]

Interest income

I. Interest income recognized by the accounting company (financial) under this account, including all types of loans (

Scope of interest income

"Interest income" means

On April 23, 2008, China Merchants Bank

In the country

The central bank announced that the benchmark interest rates for RMB deposits and loans of financial institutions will be increased from March 18, 2007. The benchmark interest rates for one-year deposits and loans will be increased by 0.27 percentage points. According to estimates by listed companies that have disclosed their annual reports, the interest rate increase will affect profits The total amount is 0.54%.

Of the listed companies that have published annual reports, 214 companies have disclosed long-term loans with a total amount of 91.506 billion yuan. According to the increase of 0.27 percentage points in the one-year loan benchmark interest rate, under the assumption that the amount is unchanged, The increase in interest expenses was 247 million yuan, accounting for 0.54% of the total profits of these companies of 45.363 billion yuan, and an increase of 2.55% in financial expenses. Although the rate of increase this time is not large, the impact on listed companies is limited. However, this interest rate hike is already the fifth time that the central bank has raised interest rates since October 29, 2004, and it is the third time that the central bank has raised interest rates since 2003. The first two interest rate increases were April 28, 2006 and On August 19, the rate of increase was also 0.27 percentage points. The central bank's interest rate hike will lead to high debt ratios, especially for listed companies with long-term borrowings, which will increase interest expenses and increase financial costs.

Generally speaking, there is a "leverage" effect between interest rates and the stock market. Increasing interest rates will directly reduce the amount of funds in the stock market. At the same time, it will increase production costs and curb corporate and consumer demand. Therefore, as interest rates rise, the stock market will fall. However, China has seen opposite results in recent interest rate hikes. On April 28, 2006, the central bank raised the loan interest rate by 0.27 percentage points, leaving the deposit interest rate unchanged. On the same day, the Shanghai Stock Index opened at 1403 points (opened 14 points lower) and closed at 1,440 points, an increase of 1.66%. On August 19, 2006, the central bank raised the benchmark interest rate for deposits and loans of financial institutions by 0.27 percentage points. On Monday, August 21, the Shanghai Composite Index opened at 1565.46 points (33 points lower) and closed at 1601.15 points, an increase of 0.20%. The Shanghai Stock Exchange Index repeated the low-open high-going scene. It opened at 2864.26 points (opened 66.22 points lower) and closed at 3014.44 points, an increase of 2.87%.

Market participants said that since 2007, the market has undergone two major adjustments, of which interest rate expectations are the most important factor. Now the "landing of boots" will help the stable operation of the securities market.