An Empirical Study of Fama-French Three-Factor Model for The Chinese Automobile Market

Automobile transportation, as the focus of national development in recent years, is not only the vigorous development of new energy vehicles, but also the continuous improvement of oil-powered vehicles. In China's stock market, the automobile sector has always been the focus of investors' attention. This paper takes 10 representative automobile manufacturing and transport-related enterprises of Shanghai Stock Exchange and Shenzhen Stock Exchange as the key research objects. According to the Fama-French three-factor model, the selected stock0s are divided into four groups, namely, high circulating market value and high book value, high circulating market value and low book value, low circulating market value and low book value. Low circulating market value Low book market value. Then the relevant empirical test and regression analysis are carried out. The experimental results show that there are still uncertainties in China's auto market, but there are also opportunities, which need to be carefully screened and spiritually invested by investors.