Abstract: The virtual economy and real economy promote the overall social economy level jointly. This study finds that the interaction between virtual economy and real economy has contributed to the rising of the overall economy level, but it doesn't mean that the two are always consistent. The main function paths of the two are as follows. On the one hand, sound capital market system can make interest rates reflect the change of the capital stock situation and avoid the risks of loan demand expansion and capital gap expanding caused by interest rates fall so as to achieve the optimal allocation of capital and to speed up the development of entity economy. Otherwise, it will barrier the financing needs of the real economy development due to the capital operation inefficiency. The real economy, on the other hand, also directly affects the development of capital market through its initial development path and specific changes. In the future, we should give full play to the effectiveness of various types of financial institutions in China's capital market to provide necessary funding for the sustainable development of the real economy. Furthermore, we should continue to optimize the structure of capital market and improve its efficiency in allocation. Moreover, we should reduce the entity economic fluctuations and strengthen the financial enterprise's own ability of resisting risks.

Key words: real economy, capital market, virtual economy, interactive relationship