Advances in Economics, Management and Political Sciences

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Proceedings of the 2nd International Conference on Financial Technology and Business Analysis

Series Vol. 56 , 01 December 2023


Open Access | Article

An Analysis of the Applicability of Pricing Models in the Chinese Stock Market

Tianshu Wang * 1
1 Capital University of Economics and Business, International School of Economics and Management, Beijing, China, 100070

* Author to whom correspondence should be addressed.

Advances in Economics, Management and Political Sciences, Vol. 56, 98-103
Published 01 December 2023. © 01 December 2023 The Author(s). Published by EWA Publishing
This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
Citation Tianshu Wang. An Analysis of the Applicability of Pricing Models in the Chinese Stock Market. AEMPS (2023) Vol. 56: 98-103. DOI: 10.54254/2754-1169/56/20231077.

Abstract

The stock market in China has an important position in the world, but it has not been able to find a pricing model suitable for the market. This paper reviews the history and development of various pricing models, analyzes relevant research on their application in the Chinese stock market, and discusses the applicability of various pricing models. It is found that the applicability of the capital asset pricing model (CAPM) in China is low; the applicability of the Fama-French three-factor model and the Fama-French five-factor model is better than CAPM, but there is significant controversy over the advantages and disadvantages of the two. It is also found that the applicability of the five-factor model may have regional differences in different markets, and there may be differences in redundant factors in different markets. It is proposed that future research should obtain more accurate market data, explore new influencing factors, and build a pricing model more suitable for the stock market in China by combining the characteristics based on more advanced data analysis technology.

Keywords

CAPM, three-factor model, five-factor model, Chinese stock market

References

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Data Availability

The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.

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Volume Title
Proceedings of the 2nd International Conference on Financial Technology and Business Analysis
ISBN (Print)
978-1-83558-159-9
ISBN (Online)
978-1-83558-160-5
Published Date
01 December 2023
Series
Advances in Economics, Management and Political Sciences
ISSN (Print)
2754-1169
ISSN (Online)
2754-1177
DOI
10.54254/2754-1169/56/20231077
Copyright
01 December 2023
Open Access
This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited

Copyright © 2023 EWA Publishing. Unless Otherwise Stated