1. Insurance industry: The interest rate hike is beneficial to the insurance industry mainly because 80% of the insurance allocation funds are used in fixed income assets.
As a result, when the Fed raises, investment returns on fixed-income assets will also increase, increasing the value of insurers.
2. Banking Industry: The reason why the Fed’s interest rate hike is good for the banking industry is mainly because the Fed’s interest rate hike actually raises the deposit rate of banks.
The higher deposit rate will attract more customers to deposit money in the bank.
The increase in bank deposits helps improve the performance of the banking sector and influences the rise in bank share prices.
3. Export industry: The interest rate hike of the Federal Reserve is beneficial to the export industry, mainly because it will appreciate and depreciate after the interest rate hike, which can better increase the import of the United States to China, which will greatly promote China’s export business and the development of China’s export business.