• ISSN: 2301-3567 (Print), 2972-3981 (Online)
    • Abbreviated Title: J. Econ. Bus. Manag.
    • Frequency: Quarterly
    • DOI: 10.18178/JOEBM
    • Editor-in-Chief: Prof. Eunjin Hwang
    • Executive Editor: Ms. Fiona Chu
    • Abstracting/ Indexing:  CNKIGoogle ScholarCrossref
    • Article Processing Charge (APC): 500 USD
    • E-mail: joebm.editor@gmail.com
JOEBM 2025 Vol.13(1): 112-117
DOI: 10.18178/joebm.2025.13.1.853

The Investigation of the Impact of the Fed Rate Hike Cycle on the Chinese Stock Market

Chengxue Jiang
Wycombe Abbey International School, Changzhou, China
Email: 1034878926@qq.com (C.X.J.)

Manuscript received October 8, 2024; revised December 14, 2024; accepted January 17, 2025; published February 25, 2025.

Abstract—The United States, as the world’s largest economy, wields significant influence over global financial markets. Consequently, the actions of the Federal Reserve, particularly in the context of interest rate hikes, have become a recent focal point of research. China’s stock market, like many others, has not been immune to the pronounced fluctuations brought about by the Federal Reserve’s interest rate decisions. In the analysis of stock market factors, foreign exchange rates and government bond yields are frequently examined as these are among the most sensitive financial indicators, widely used to assess their correlation with stock markets. Therefore, this study has selected these two pivotal variables, namely foreign exchange rates and government bond yields, to conduct a thorough investigation into their impact on the Chinese stock market. Through the establishment of regression models and meticulous analysis, we have discovered that foreign exchange rates hurt the Chinese stock market, whereas government bond yields exert a positive influence. Based on these findings, this study provides corresponding explanations and investment recommendations.

Keywords—Chinese stock market, interest rate hike policy, multi-regression 

Cite: Chengxue Jiang, "The Investigation of the Impact of the Fed Rate Hike Cycle on the Chinese Stock Market," Journal of Economics, Business and Management, vol. 13, no. 1, pp. 112-117, 2025.

Copyright © 2025 by the authors. This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited (CC BY 4.0).

 
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