From the perspective of the sector, interest rate increase means less supply and less enterprise financing, which will directly lead to the contraction of funds for small and medium-sized enterprises, slow down the development speed, and the stock price is bound to fall.
On the contrary, the capital turnover of large enterprises is stable and will not be affected. When the competitiveness of small enterprises declines, large enterprises will have an advantage.
I. Banking sector.
The reason why it is good for the banking sector is mainly because the interest rate hike is actually to increase the bank deposits. The increase of deposit rate will attract more investors to deposit money in the bank. The increase of bank deposits is conducive to the improvement of bank performance, the valuation of banks, and the rise of bank stock prices.
2. Export industry.
Such as textile and clothing industry, shipping industry, chemical industry, household appliances industry, etc.;
Export-oriented industries, which mainly use settlement, are the biggest boon.
The main reason why a Fed rate hike would be good for exports is because the dollar would rise after the Fed rate hike.
Relatively speaking, it depreciates, then our export goods to foreign countries will be cheaper, more price advantage, competitiveness will be strengthened.
3. Domestic construction enterprises and construction enterprises.
Foreign “Belt and Road” development opportunities, seize market share, improve the company’s profit.
When the dollar enters the interest rate hike cycle, it will be cheaper for our country to participate in international construction tenders and the competitiveness of these industries will be strengthened.
So the Fed interest rate increase for domestic construction companies to participate in international competition.
