Abstract
This study examines the risk-return trade-off for prominent Chinese new energy companies within the context of the country's burgeoning sustainable energy sector. Utilizing the Capital Asset Pricing Model (CAPM), the paper investigates the systematic risk factors impacting the stock returns of BYD, CATL, and Sungrow, which are leaders in the electric vehicles, energy storage, and photovoltaic sectors, respectively. The research highlights the unique beta coefficients indicative of each company's market volatility and explores the implications of these risk profiles for investors and policymakers. While the findings suggest the presence of abnormal returns and provide valuable insights for investment strategies and policy formulation, the paper acknowledges limitations in market-based risk assessment and suggests future research to incorporate a broader range of company-specific factors and comparative analyses. This study contributes significantly to understanding the complexities and dynamics of risk management in China's rapidly advancing new energy market.
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