To what extent does the U.S. Federal Reserve's interest rate cut affect China's stock market?
Year: 2025
Type: article
Abstract: This essay aims to find the impacts of the cut in interest in the US on Chinese stocks, including the attention to the prediction price of A stock, and the difference in behaviour in different industries. The cut in interest rate is an important policy that the federal government could exert, which often has significant effects on the global economy, especially for newborn countries. First, by data analysis, this paper evaluates the fluctuation in the short term and the tendency in the long term. Then, this essay focuses on the reaction of different industries, including consumption, finance and technology. At last, this paper concludes the methods that could be utilized in the research, including traditional finance model, machine learning, and text analysis, which means to accurately assess the impacts of the quantities methods. This paper provides the theoretical and exact evidence for figuring out the influence of the cut on A Stock from the flowing ability, capital flowing, and markets emotions. The finding indicates that the cut not only affects the markets fluctuation, but also the expected price in a particular industries and the portfolio of investors.
Author: Kangsong Yan
Institution: Renmin University of China
Language: English
Subfield: Economics and Econometrics
Domain: Social Sciences
Open Access status: hybrid
OpenAlex ID: W4414981247
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