Research On The Influencing Factors Of SSE 50 Index Return

The factors that affect stock returns are diversified.The fama-french five-factor model proposed that the return of marketable securities is influenced by market factors and four fundamental factors.The research object of this paper is the sse 50 index.A general survey of the historical trend of the sse 50 index shows that the sse 50 index,as the "ballast" of ashares,can always obtain excess returns higher than the sse 50 index whenever there is A huge fluctuation in the market.So the sse 50 index yield by what factors,these issues are worth in-depth study.On the basis of combing relevant research literature and theories,this paper conducts a qualitative and quantitative analysis on the return of sse 50 index based on the factors proposed in the five-factor model and the factors obtained by analyzing the characteristics of sse 50 index itself as explanatory variables.The results show that market factor,profitability factor,valuation factor,industry style factor and weighted stock factor have significant positive correlation with sse 50 index earnings.The influence of investment style factor and "survival of the fittest" factor on sse 50 index is not significant.Based on the research findings,this paper suggests that the investment style of investors should focus on value investment,appropriately increase the allocation of high-weighted stocks in the bear market,and increase the allocation of securities companies in the early bull market.Market regulators should do a good job in regularly adjusting the components of the sse 50 index,and should adopt various methods other than lifting the sse 50 index to maintain the stability of the market.The conclusion of this paper is helpful to improve the understanding of sse 50 index,grasp the market style and test the applicability of the five-factor model in A-share market.