While dealing with China companies, the inflation of ratings in bond market and the intransparent financial info of China enterprises are always the pain points.
The limitations interrupt us from analyzing and speculating the early warning ability of corporate credit risk by not only public data collection but the confidence of data in China.
On top of the bond defaults scale continues to hit record highs, China-U.S war trade also cause the penalty to rise above the amount of almost 160 billion CNY(about 23 billion USD) of China bonds which now increases every single year.
In order to counter the potential loss due to the incessant risk in China markets,
TEJ issued CCRQM in 2013, as a comprehensive and neutral credit rating of China companies calculated by strict quantitative model, focusing on the peculiarity of China enterprises which includes assets restructuring、back door listing、window dressing and cash fraud.
TEJ diligently introspect and revise methodology of CCRQM, hoping to enhance the early warning ability, and for sure, continuously providing solutions for you.
Solution by TEJ
Variables of Quantitative Models
TEJ uses the financial data from financial reports to create logistic regression and expert's judgment to decide the best combination of variables and variable weights in models. In this way, credit scoring model of Scorecard generates user-friendly credit scores.
Based on quantitative models to generate comprehensive scores which are then classified into CCRQM.
Taking revenue, window dressing financial statements and conglomerate pressure as threshold to adjust fundamental level accordingly.
CCRQM Crisis definition