The US Federal Reserve's interest rate increase will not affect China's economic stability, as overall risks in the domestic financial market are controllable, said experts and investors after the Fed raised its benchmark interest rate by 75 basis points on Wednesday, marking the sharpest rate hike since 1994.

China's central bank's adherence to a relatively prudent monetary policy is unique and responsible, said Chen Dong, head of Asia macroeconomic research at Pictet Wealth Management, according to a report by International Finance News on Thursday.

This policy stance is good for the long-term stability of the Chinese economy, he added.

Wang Youxin, a senior researcher at Bank of China, said the Fed's monetary tightening will lead to continued disruption to global cross-border capital flows and currency markets.

As China owns massive foreign exchange reserves, comparatively large surpluses, and prudent macro policies for cross-border capital flows, the overall risks for domestic financial market are controllable, he said.

Boosting consumption, especially of durable goods such as automobiles, will become an important measure to stabilize China's economic growth, said Essence Securities.

Large fluctuations in overseas markets will indeed bring periodic disturbance to the domestic market. However, amid the turmoil in the US market, what global capital needs is a market that is relatively independent to the US economy and has a certain capacity, and China may be a better choice, said an expert of Industrial Securities to news portal The Paper.

The recent expectations of recession overseas and monetary tightening, the decline in US stocks, and the rise of interest rates have not had too much negative impact on China's A-share market, as China's economic policies have greatly increased the market's confidence, according to a research report of GF Securities.

As the country is recovering from the COVID-19 pandemic, China's equity market will remain more cost-effective than the overseas equity market amid the monetary tightening by the Fed and a slowing down overseas economy, the report said.