Analysis on the Differences between the Four-Factor Model of Chinese and International Markets and Research on Optimization Paths

This study focuses on the four-factor model of the Chinese market and the international market, and deeply analyzes the differences between the two. By combing the development context and constituent elements of the four-factor model, combined with the particularity of A-shares, a Chinese version of the model is constructed and compared with the international market model to analyze the factor performance and model effect. The study found that the models of the two markets have commonalities in development and composition, but there are significant differences in market environment, factor performance, etc., and each has its own advantages and disadvantages in explaining stock returns. Based on this, the direction of model optimization, cross-market analysis and method improvement is proposed for subsequent research, in order to provide reference for investors and market research.