China'S Stock Market Has Always Been Very Sensitive To Raising Interest Rates In The US.

The Fed's interest rate increase will not change the basic trend of China's stock market even though it will not play a particularly important role in China's stock market.

Since the "spring quotes" this year, the market has generally been more moderate, indicating that investors are more cautious.

Under such circumstances, the Fed's interest rate raising operation and the adjustment of the stock market are inevitable.

Of course, after the interest rate rises, the market will continue to strengthen with the bad profits.

Not long ago, the Federal Reserve held a conference on interest rates. Although no announcement was made to raise interest rates at that time, the information conveyed at the meeting was due to the continuous improvement of the economy. Therefore, the conditions and necessities of raising interest rates have been gradually achieved.

As a result, it is speculated that the Federal Reserve is likely to raise interest rates in March this year.

The United States is the world's largest economy, and the US dollar is the most important international currency in the world. The impact of US interest rate hike on the market is enormous.

After the Fed meeting, the US dollar index went up, gold and bulk raw material prices fell, and the stock market went down.

This situation should also be very normal. After all, raising interest rates has raised the cost of capital in the whole market, and is conducive to the return of funds to the US. Meanwhile, the risk-free rate of return is likely to rise as a result, thus putting pressure on risky assets.

It has always been very sensitive to the US interest rate increase. This is not only because the United States is the source of the largest surplus of China's foreign trade, but also the country with the largest reserves of US dollar. Raising interest rates may cause changes in the flow of capital and have a significant impact on some sectors of the real economy.

However, what is interesting is that after the Fed's "Hawk" speech was released, many people thought that it had no effect on China's stock market, and the rising market could simply ignore the impact of raising interest rates.

Why do I say this? Some people think that this is because the Chinese stock market is now launching the "spring market". Under the impetus of all kinds of forces, the market has certain strength, so it can resist the influence of overseas market.

Besides, even if

Raising interest rates, the real interest rate in the United States is still relatively low, which is not enough to fundamentally change the direction of international capital flows, so there is no need to worry too much.

There is no doubt that these explanations are not without reason.

However, although the Chinese stock market is indeed rising for some time, it can also be considered as a "spring market", but this does not mean that it will only go higher unilaterally without any external influence.

As a matter of fact, today's market is in the form of concussion, and there will be repeated in itself. The Fed's interest rate raising event can not bring no effect. The problem is only in size.

Secondly, it was true that the Fed raised interest rates at the end of last year, but the stock market in other countries and regions was also not affected.

At that time, just when Trump came to power, the market was immersed in the atmosphere of "Trump quotes", and the stock market generally rose, which was a hedge against the Fed's interest rate hike.

Now, compared to that time, the overseas market has risen a lot, and there are adjustments in itself, and Trump's market seems to be a little too weak.

As a result, the overseas market is the first to start to fall. So why can we say that China's stock market will not be affected? The rate of us benchmark interest rate is still relatively low after the increase in interest rates. This is of course a fact, but the problem is that the United States is likely to continue to raise interest rates this year. This trend will become very clear because of the increase in interest rates in March.

And the stock market is expected, under this expectation.

Is it necessary to move ahead?

Therefore, the Fed's interest rate increase will not play a particularly important role in the Chinese stock market, or it will not change the basic trend of the market. However, the effect should not be underestimated.

Since the "spring quotes" this year, the market has generally been more moderate, indicating that investors are more cautious.

Under such circumstances, the Federal Reserve's interest rate increase will further strengthen people's prudent form. Therefore, the adjustment of the stock market is inevitable. Investors should have more anticipation.

Of course, after the interest rate rises, the market will continue to strengthen with the bad profits.

There is no doubt about this.

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