Empirical Study of CAPM in the 5G sector of Chinese stock market

This paper aims to verify The Capital Asset Pricing Model (CAPM) in the Chinese 5G stock market. Daily information of nineteen 5G stocks was selected from the Shanghai Stock market from January 2019 to October 2021 for analysis. This paper tested the CAPM model using the Black, Jensen, and Scholes (BJS) time-series method and Fama and Macbeth (FM). The result shows lack of statistically significant evidence in CAPM verification on Chinese stock portfolio, and failed to prove the validity of CAPM in 5G stocks of the Chinese stock market. Reasons such as insufficient 5G companies information, unique Chinese stock market situation, and Chinese treasury bill require further research to adjust CAPM application to guide decision making for corporate and individual investors.