The Comparative Analysis of the Influence of Shanghai Composite Index and Shenzhen Component Index on stock return of Contemporary Amperex Technology Co. Limited (CATL)

Abstract

CATL has been a popular choice among all the stocks in Chinas stock market and has been recognized by many investment institutions as a good choice for long-term holding. However, its stock return always varies in Shanghai Composite Index and Shenzhen Component Index and no previous research has been done in terms of this area. Thus, to figure out the influence each market does on CATLs stock, this research applied Capital Asset Pricing Model (CAPM) as the quantitative calculation method and made a linear regression to calculate the difference in return by analyzing the P-value, coefficients () and intercepts (). The findings indicate that CATLs stock price is more highly valued by the Shenzhen Component Index while Shanghai Stock Exchange has a more significant influence on CATLs stock. In addition, the effectiveness of the CAPM model in stock valuation is further verified through the comparative analysis.