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World’s 1st Investment Strategy focuses on China’s shares trading risks

CKN
minutes 2020/02/26 10:03:05
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Feb 26, 2020 (China Knowledge) - China Knowledge is proud to announce the launch of the world’s 1st investment strategy report on investing and trading China’s equity market. Using in-house developed market-relevant metrics with full scoring of up to 100 points, we offer investors a 5 levels indicator to grasp the risks in each listed companies.

This company’s Trading Risk Analytic is conducted on a monthly basis and show each metric that carries a different weightage in accordance with our in-house research to offer investors directional guidance on a listed company's 1-month forward trading risk. Though it should not constitute a Buy/Hold/Sell recommendation but each risk level allocated indicate possible inherent risks not usually reflected in most exchanges. 

To accomplish such risk assessment and in-depth research, we take into account a company’s:

1. Collateralized Shares Report

2. Shares under Custodian by Court's Order

3. Major Shareholders' Sales of Shares

4. Shares Lockup Period (including privately placed out shares)

5. Institutional Investors’ Holdings

6. Foreign Investors Rating

7. Technical Analysis (in the context of China’s market) and

8. Margin Trading & Stock Lending

Be informed and equipped with these unique tools investing in China’s stock market.

To request free copies (up to 3 copies) for review please write an email to jerry_zheng@chinaknowledge.com.

To obtain a copy of the definitions on the 5 levels of trading risk please write to ted_worley@chinaknowledge or mike_lee@chinaknowledge.com.

Our Investment Strategy reports are also available on FactSet’s Embargoed Research, Thomson Research Bank, Bloomberg, and S&P Capital IQ.

 

Level 1This is lowest trading risk level that the company is unlikely to experience downward price swings. It is not exposed to uninformed large short positions. Its Foreign Investors Rating in the Q4 2019 either scored ‘A+’ or ‘A’ indicating active foreign investment. Margin trading net off stock lending in this company’s shares is positive that signals active buying. The 8-metrics measurement gives it a score above 80 points.

There are only 3.4% companies graded Risk Level 1 among 1,580 we assessed in this report.

Level 2This is a low trading risk level that is not likely to experience downward price swings. It is not exposed to uninformed large short positions. Its Foreign Investors Rating in the Q4 2019 may be high scoring or average performer. Margin trading net off stock lending in this company’s shares is positive that signals active buying. The 8-metrics measurement gives it a score of between 60 and 79 points.

There are 36.5% companies graded Risk Level 2 among 1,580 we assessed in this report.

Level 3This is a Neutral rating on risk level that is subject to market trading condition and may carry some risk. Price volatility is greater than stocks with lower risk levels. Its Foreign Investors Rating in the Q4 2019 is good gauge of its potential price performance.  The 8-metrics measurement gives it a score of between 40 and 59 points.

There are 39.3% companies graded Risk Level 3 among 1,580 we assessed in this report.

Level 4This is high trading risk level that indicates possibility of downward price swings. It is likely to be exposed to large short positions. Its Foreign Investors Rating in the Q4 2019 either scored ‘C’ or ‘D’ indicating few or no foreign investment. Margin trading on the stock is inactive, and below market’s average. The 8-metrics measurement gives it a score of between 20 and 39 points.

There are 18.4% companies graded Risk Level 4 among 1,580 we assessed in this report.

Level 5This is highest trading risk level that indicates high possibility of downward price swings. It is likely to be exposed to large short positions. Its Foreign Investors Rating in the Q4 2019 either scored ‘C’ or ‘D’ indicating few or no foreign investment. Margin trading on the stock is inactive, and below market’s average. The 8-metrics measurement gives it a score below 20 points.

There are only 2.4% companies graded Risk Level 5 among 1,580 we assessed in this report.

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