TEJ adopts the data from financial reports to create logistic regression and expert judgment to decide the best combination of variables and variable weights in models. In this way, the credit scoring model of Scorecard generates user-friendly credit scores.<\/p>\n
<\/span>TEJ Solution<\/h2>\n![\"\"](\"https:\/\/www.tejwin.com\/wp-content\/uploads\/\/ccrqm-1024x558.jpg\")
<\/figure>\n<\/div>\n<\/span>\u2728Key Features<\/h3>\n\n- Listed corporate entities in Shanghai and Shenzhen are\u00a0the main objects.<\/li>\n
- Opened and transparent quantitative model ratings.<\/li>\n
- Based on TEJ standardized and comparable financial data.<\/li>\n
- Rating\u00a0results are updated regularly upon the release of new financial reports.<\/li>\n<\/ul>\n
<\/span>\u2728Key Advantages<\/h3>\n\n- Distinguished credit ratings.<\/li>\n
- Neutral credit ratings by third parties.<\/li>\n
- Regular publication of factors modification and validity test of the model.<\/li>\n<\/ul>\n
<\/span>\u2728Key Benefits<\/h3>\n\n- Bankers\uff1a Enhance credit risk evaluation efficiency.<\/li>\n
- Investors\uff1a Manage investment portfolio\u00a0credit risk.<\/li>\n
- Corporatations\uff1a Evaluate changes in credit risk efficiently.<\/li>\n<\/ul>\n
<\/span>CCRQM Model Variables<\/h2>\nThe model primarily utilizes publicly available financial statement data, applying logistic stepwise regression combined with expert judgment to select the optimal variable combinations and their respective weights.
\nThese are then converted into user-friendly credit scores using a scorecard credit scoring model.<\/p>\n![\"\"](\"https:\/\/www.tejwin.com\/wp-content\/uploads\/\/ccrqm-score-model-1-1024x519.jpg\")
Scorecard Credit Scoring Model<\/figcaption><\/figure>\n\nStart Managing Corporate Credit Risk of Investment Portfolio
\nEvaluate Credit Risk More Efficiently Today!<\/span><\/span><\/p>\nContact Us<\/a><\/strong><\/div>\n<\/div>\n<\/span>FORMULA Grade: Calculate the composite score to determine the corresponding grade<\/strong><\/h3>\n![\"\"](\"https:\/\/www.tejwin.com\/wp-content\/uploads\/\/CCRQM-risk-grade-1-1024x701.jpg\")
Risk category corresponds to a specific grade<\/figcaption><\/figure>\n<\/span>BASIC Grade<\/strong><\/h3>\nAdjustment of the formula grade to the basic grade by using financial disclosure and group as the threshold limit.<\/p>\n![\"\"](\"https:\/\/www.tejwin.com\/wp-content\/uploads\/\/ccrqm-basic-grade-2-1024x267.jpg\")
Risk Assessment Factors for BASIC Grade<\/figcaption><\/figure>\n<\/span>Warning ability\/Discriminatory power (ROC)>90% or above:<\/strong><\/h3>\nThe average default risk differentiation ability of 90.24% over the last 10 years (2014~2023) indicates that the quantitative model (threshold level) has a high differentiation ability regardless of the modeling period.<\/p>\n![\"\"](\"https:\/\/www.tejwin.com\/wp-content\/uploads\/\/CCRQM-warning-ability-1024x86.jpg\")
<\/figure>\n<\/div>\n<\/span>Stability: One-year average transition matrix of CCRQM (2005-2023)<\/strong><\/h3>\nObserving the status of quantitative model (basic grade) rating through the shift matrix, the average 1-year maintenance rate from 2005-2023 is about 40-60%, and the volatility of low risk is small compared to the high risk. Through the expert judgment rating, it can effectively improve the ability and stability of the long-term investment and credit index.<\/p>\n![\"\"](\"https:\/\/www.tejwin.com\/wp-content\/uploads\/\/CCRQM-one-year-transition-1024x389.jpg\")
<\/figure>\n<\/div>\n<\/span>TEJ CCRQM<\/h2>\nFacing the special characteristics of Chinese enterprises: asset restructuring, shell-listing, financial window-dressing, and the outbreak of cash fraud cases in recent years, TEJ have been reflecting on and revising\u00a0CCRQM<\/mark><\/strong>\u2018s methodology. We continue to provide solutions for you to enhance your early warning capability!<\/p>\n\nStart Managing Corporate Credit Risk of Investment Portfolio
\nEvaluate Credit Risk More Efficiently Today!<\/strong><\/a><\/div>\n<\/div>\n<\/div>\n![\"CCRQM\"](\"https:\/\/www.tejwin.com\/wp-content\/uploads\/CCRQM20solution.png\")
<\/figure>\n","protected":false},"excerpt":{"rendered":"CCRQM The opacity of Chinese corporate information and […]<\/p>\n","protected":false},"featured_media":0,"template":"","tags":[155,160],"product_category":[4],"class_list":["post-3377","product","type-product","status-publish","hentry","tag-credit-risk-solution","tag-ccrqm","product_category-credit-risk-solution"],"acf":{"p_introduction":"
CCRQM<\/h2>\r\n
The opacity of Chinese corporate information and the inflated ratings in the bond market have always been the biggest pain in our cooperation with Chinese corporations. From the complexity of data collection to the credibility of data analysis, data limitations of all sizes affect our ability to assess the credit risk of corporations from publicly available information.<\/p>\r\n
In 2013, TEJ published\u00a0China Corporate Credit Quantitative Model<\/strong>,\u00a0CCRQM<\/mark><\/strong>, a credit risk rating system for evaluating China Corporate\u2019s credit. CCRQM is based on quantitative models and data generated from financial reports. These ratings are updated every half-year.<\/p>\r\nTEJ adopts the data from financial reports to create logistic regression and expert judgment to decide the best combination of variables and variable weights in models. In this way, the credit scoring model of Scorecard generates user-friendly credit scores.<\/p>\r\n\r\n
<\/span>TEJ Solution<\/h2>\r\n<\/figure>\r\n<\/div>\r\n<\/span>\u2728Key Features<\/h3>\r\n\r\n \t- Listed corporate entities in Shanghai and Shenzhen are\u00a0the main objects.<\/li>\r\n \t
- Opened and transparent quantitative model ratings.<\/li>\r\n \t
- Based on TEJ standardized and comparable financial data.<\/li>\r\n \t
- Rating\u00a0results are updated regularly upon the release of new financial reports.<\/li>\r\n<\/ul>\r\n
<\/span>\u2728Key Advantages<\/h3>\r\n\r\n \t- Distinguished credit ratings.<\/li>\r\n \t
- Neutral credit ratings by third parties.<\/li>\r\n \t
- Regular publication of factors modification and validity test of the model.<\/li>\r\n<\/ul>\r\n
<\/span>\u2728Key Benefits<\/h3>\r\n\r\n \t- Bankers\uff1a Enhance credit risk evaluation efficiency.<\/li>\r\n \t
- Investors\uff1a Manage investment portfolio\u00a0credit risk.<\/li>\r\n \t
- Corporatations\uff1a Evaluate changes in credit risk efficiently.<\/li>\r\n<\/ul>\r\n
<\/span>CCRQM Model Variables<\/h2>\r\nThe model primarily utilizes publicly available financial statement data, applying logistic stepwise regression combined with expert judgment to select the optimal variable combinations and their respective weights.\r\nThese are then converted into user-friendly credit scores using a scorecard credit scoring model.<\/p>\r\n\r\nScorecard Credit Scoring Model<\/figcaption><\/figure>\r\n
<\/figure>\n<\/span>\u2728Key Features<\/h3>\n\n- Listed corporate entities in Shanghai and Shenzhen are\u00a0the main objects.<\/li>\n
- Opened and transparent quantitative model ratings.<\/li>\n
- Based on TEJ standardized and comparable financial data.<\/li>\n
- Rating\u00a0results are updated regularly upon the release of new financial reports.<\/li>\n<\/ul>\n
<\/span>\u2728Key Advantages<\/h3>\n\n- Distinguished credit ratings.<\/li>\n
- Neutral credit ratings by third parties.<\/li>\n
- Regular publication of factors modification and validity test of the model.<\/li>\n<\/ul>\n
<\/span>\u2728Key Benefits<\/h3>\n\n- Bankers\uff1a Enhance credit risk evaluation efficiency.<\/li>\n
- Investors\uff1a Manage investment portfolio\u00a0credit risk.<\/li>\n
- Corporatations\uff1a Evaluate changes in credit risk efficiently.<\/li>\n<\/ul>\n
<\/span>CCRQM Model Variables<\/h2>\nThe model primarily utilizes publicly available financial statement data, applying logistic stepwise regression combined with expert judgment to select the optimal variable combinations and their respective weights.
\nThese are then converted into user-friendly credit scores using a scorecard credit scoring model.<\/p>\nScorecard Credit Scoring Model<\/figcaption><\/figure>\n\nStart Managing Corporate Credit Risk of Investment Portfolio
\nEvaluate Credit Risk More Efficiently Today!<\/span><\/span><\/p>\nContact Us<\/a><\/strong><\/div>\n<\/div>\n<\/span>FORMULA Grade: Calculate the composite score to determine the corresponding grade<\/strong><\/h3>\nRisk category corresponds to a specific grade<\/figcaption><\/figure>\n<\/span>BASIC Grade<\/strong><\/h3>\nAdjustment of the formula grade to the basic grade by using financial disclosure and group as the threshold limit.<\/p>\nRisk Assessment Factors for BASIC Grade<\/figcaption><\/figure>\n<\/span>Warning ability\/Discriminatory power (ROC)>90% or above:<\/strong><\/h3>\nThe average default risk differentiation ability of 90.24% over the last 10 years (2014~2023) indicates that the quantitative model (threshold level) has a high differentiation ability regardless of the modeling period.<\/p>\n<\/figure>\n<\/div>\n<\/span>Stability: One-year average transition matrix of CCRQM (2005-2023)<\/strong><\/h3>\nObserving the status of quantitative model (basic grade) rating through the shift matrix, the average 1-year maintenance rate from 2005-2023 is about 40-60%, and the volatility of low risk is small compared to the high risk. Through the expert judgment rating, it can effectively improve the ability and stability of the long-term investment and credit index.<\/p>\n<\/figure>\n<\/div>\n<\/span>TEJ CCRQM<\/h2>\nFacing the special characteristics of Chinese enterprises: asset restructuring, shell-listing, financial window-dressing, and the outbreak of cash fraud cases in recent years, TEJ have been reflecting on and revising\u00a0CCRQM<\/mark><\/strong>\u2018s methodology. We continue to provide solutions for you to enhance your early warning capability!<\/p>\n\nStart Managing Corporate Credit Risk of Investment Portfolio
\nEvaluate Credit Risk More Efficiently Today!<\/strong><\/a><\/div>\n<\/div>\n<\/div>\n<\/figure>\n","protected":false},"excerpt":{"rendered":"CCRQM The opacity of Chinese corporate information and […]<\/p>\n","protected":false},"featured_media":0,"template":"","tags":[155,160],"product_category":[4],"class_list":["post-3377","product","type-product","status-publish","hentry","tag-credit-risk-solution","tag-ccrqm","product_category-credit-risk-solution"],"acf":{"p_introduction":"
CCRQM<\/h2>\r\n
The opacity of Chinese corporate information and the inflated ratings in the bond market have always been the biggest pain in our cooperation with Chinese corporations. From the complexity of data collection to the credibility of data analysis, data limitations of all sizes affect our ability to assess the credit risk of corporations from publicly available information.<\/p>\r\n
In 2013, TEJ published\u00a0China Corporate Credit Quantitative Model<\/strong>,\u00a0CCRQM<\/mark><\/strong>, a credit risk rating system for evaluating China Corporate\u2019s credit. CCRQM is based on quantitative models and data generated from financial reports. These ratings are updated every half-year.<\/p>\r\nTEJ adopts the data from financial reports to create logistic regression and expert judgment to decide the best combination of variables and variable weights in models. In this way, the credit scoring model of Scorecard generates user-friendly credit scores.<\/p>\r\n\r\n
<\/span>TEJ Solution<\/h2>\r\n<\/figure>\r\n<\/div>\r\n<\/span>\u2728Key Features<\/h3>\r\n\r\n \t- Listed corporate entities in Shanghai and Shenzhen are\u00a0the main objects.<\/li>\r\n \t
- Opened and transparent quantitative model ratings.<\/li>\r\n \t
- Based on TEJ standardized and comparable financial data.<\/li>\r\n \t
- Rating\u00a0results are updated regularly upon the release of new financial reports.<\/li>\r\n<\/ul>\r\n
<\/span>\u2728Key Advantages<\/h3>\r\n\r\n \t- Distinguished credit ratings.<\/li>\r\n \t
- Neutral credit ratings by third parties.<\/li>\r\n \t
- Regular publication of factors modification and validity test of the model.<\/li>\r\n<\/ul>\r\n
<\/span>\u2728Key Benefits<\/h3>\r\n\r\n \t- Bankers\uff1a Enhance credit risk evaluation efficiency.<\/li>\r\n \t
- Investors\uff1a Manage investment portfolio\u00a0credit risk.<\/li>\r\n \t
- Corporatations\uff1a Evaluate changes in credit risk efficiently.<\/li>\r\n<\/ul>\r\n
<\/span>CCRQM Model Variables<\/h2>\r\nThe model primarily utilizes publicly available financial statement data, applying logistic stepwise regression combined with expert judgment to select the optimal variable combinations and their respective weights.\r\nThese are then converted into user-friendly credit scores using a scorecard credit scoring model.<\/p>\r\n\r\nScorecard Credit Scoring Model<\/figcaption><\/figure>\r\n
<\/span>\u2728Key Advantages<\/h3>\n\n- Distinguished credit ratings.<\/li>\n
- Neutral credit ratings by third parties.<\/li>\n
- Regular publication of factors modification and validity test of the model.<\/li>\n<\/ul>\n
<\/span>\u2728Key Benefits<\/h3>\n\n- Bankers\uff1a Enhance credit risk evaluation efficiency.<\/li>\n
- Investors\uff1a Manage investment portfolio\u00a0credit risk.<\/li>\n
- Corporatations\uff1a Evaluate changes in credit risk efficiently.<\/li>\n<\/ul>\n
<\/span>CCRQM Model Variables<\/h2>\nThe model primarily utilizes publicly available financial statement data, applying logistic stepwise regression combined with expert judgment to select the optimal variable combinations and their respective weights.
\nThese are then converted into user-friendly credit scores using a scorecard credit scoring model.<\/p>\nScorecard Credit Scoring Model<\/figcaption><\/figure>\n\nStart Managing Corporate Credit Risk of Investment Portfolio
\nEvaluate Credit Risk More Efficiently Today!<\/span><\/span><\/p>\nContact Us<\/a><\/strong><\/div>\n<\/div>\n<\/span>FORMULA Grade: Calculate the composite score to determine the corresponding grade<\/strong><\/h3>\nRisk category corresponds to a specific grade<\/figcaption><\/figure>\n<\/span>BASIC Grade<\/strong><\/h3>\nAdjustment of the formula grade to the basic grade by using financial disclosure and group as the threshold limit.<\/p>\nRisk Assessment Factors for BASIC Grade<\/figcaption><\/figure>\n<\/span>Warning ability\/Discriminatory power (ROC)>90% or above:<\/strong><\/h3>\nThe average default risk differentiation ability of 90.24% over the last 10 years (2014~2023) indicates that the quantitative model (threshold level) has a high differentiation ability regardless of the modeling period.<\/p>\n<\/figure>\n<\/div>\n<\/span>Stability: One-year average transition matrix of CCRQM (2005-2023)<\/strong><\/h3>\nObserving the status of quantitative model (basic grade) rating through the shift matrix, the average 1-year maintenance rate from 2005-2023 is about 40-60%, and the volatility of low risk is small compared to the high risk. Through the expert judgment rating, it can effectively improve the ability and stability of the long-term investment and credit index.<\/p>\n<\/figure>\n<\/div>\n<\/span>TEJ CCRQM<\/h2>\nFacing the special characteristics of Chinese enterprises: asset restructuring, shell-listing, financial window-dressing, and the outbreak of cash fraud cases in recent years, TEJ have been reflecting on and revising\u00a0CCRQM<\/mark><\/strong>\u2018s methodology. We continue to provide solutions for you to enhance your early warning capability!<\/p>\n\nStart Managing Corporate Credit Risk of Investment Portfolio
\nEvaluate Credit Risk More Efficiently Today!<\/strong><\/a><\/div>\n<\/div>\n<\/div>\n<\/figure>\n","protected":false},"excerpt":{"rendered":"CCRQM The opacity of Chinese corporate information and […]<\/p>\n","protected":false},"featured_media":0,"template":"","tags":[155,160],"product_category":[4],"class_list":["post-3377","product","type-product","status-publish","hentry","tag-credit-risk-solution","tag-ccrqm","product_category-credit-risk-solution"],"acf":{"p_introduction":"
CCRQM<\/h2>\r\n
The opacity of Chinese corporate information and the inflated ratings in the bond market have always been the biggest pain in our cooperation with Chinese corporations. From the complexity of data collection to the credibility of data analysis, data limitations of all sizes affect our ability to assess the credit risk of corporations from publicly available information.<\/p>\r\n
In 2013, TEJ published\u00a0China Corporate Credit Quantitative Model<\/strong>,\u00a0CCRQM<\/mark><\/strong>, a credit risk rating system for evaluating China Corporate\u2019s credit. CCRQM is based on quantitative models and data generated from financial reports. These ratings are updated every half-year.<\/p>\r\nTEJ adopts the data from financial reports to create logistic regression and expert judgment to decide the best combination of variables and variable weights in models. In this way, the credit scoring model of Scorecard generates user-friendly credit scores.<\/p>\r\n\r\n
<\/span>TEJ Solution<\/h2>\r\n<\/figure>\r\n<\/div>\r\n<\/span>\u2728Key Features<\/h3>\r\n\r\n \t- Listed corporate entities in Shanghai and Shenzhen are\u00a0the main objects.<\/li>\r\n \t
- Opened and transparent quantitative model ratings.<\/li>\r\n \t
- Based on TEJ standardized and comparable financial data.<\/li>\r\n \t
- Rating\u00a0results are updated regularly upon the release of new financial reports.<\/li>\r\n<\/ul>\r\n
<\/span>\u2728Key Advantages<\/h3>\r\n\r\n \t- Distinguished credit ratings.<\/li>\r\n \t
- Neutral credit ratings by third parties.<\/li>\r\n \t
- Regular publication of factors modification and validity test of the model.<\/li>\r\n<\/ul>\r\n
<\/span>\u2728Key Benefits<\/h3>\r\n\r\n \t- Bankers\uff1a Enhance credit risk evaluation efficiency.<\/li>\r\n \t
- Investors\uff1a Manage investment portfolio\u00a0credit risk.<\/li>\r\n \t
- Corporatations\uff1a Evaluate changes in credit risk efficiently.<\/li>\r\n<\/ul>\r\n
<\/span>CCRQM Model Variables<\/h2>\r\nThe model primarily utilizes publicly available financial statement data, applying logistic stepwise regression combined with expert judgment to select the optimal variable combinations and their respective weights.\r\nThese are then converted into user-friendly credit scores using a scorecard credit scoring model.<\/p>\r\n\r\nScorecard Credit Scoring Model<\/figcaption><\/figure>\r\n
<\/span>\u2728Key Benefits<\/h3>\n\n- Bankers\uff1a Enhance credit risk evaluation efficiency.<\/li>\n
- Investors\uff1a Manage investment portfolio\u00a0credit risk.<\/li>\n
- Corporatations\uff1a Evaluate changes in credit risk efficiently.<\/li>\n<\/ul>\n
<\/span>CCRQM Model Variables<\/h2>\nThe model primarily utilizes publicly available financial statement data, applying logistic stepwise regression combined with expert judgment to select the optimal variable combinations and their respective weights.
\nThese are then converted into user-friendly credit scores using a scorecard credit scoring model.<\/p>\nScorecard Credit Scoring Model<\/figcaption><\/figure>\n\nStart Managing Corporate Credit Risk of Investment Portfolio
\nEvaluate Credit Risk More Efficiently Today!<\/span><\/span><\/p>\nContact Us<\/a><\/strong><\/div>\n<\/div>\n<\/span>FORMULA Grade: Calculate the composite score to determine the corresponding grade<\/strong><\/h3>\nRisk category corresponds to a specific grade<\/figcaption><\/figure>\n<\/span>BASIC Grade<\/strong><\/h3>\nAdjustment of the formula grade to the basic grade by using financial disclosure and group as the threshold limit.<\/p>\nRisk Assessment Factors for BASIC Grade<\/figcaption><\/figure>\n<\/span>Warning ability\/Discriminatory power (ROC)>90% or above:<\/strong><\/h3>\nThe average default risk differentiation ability of 90.24% over the last 10 years (2014~2023) indicates that the quantitative model (threshold level) has a high differentiation ability regardless of the modeling period.<\/p>\n<\/figure>\n<\/div>\n<\/span>Stability: One-year average transition matrix of CCRQM (2005-2023)<\/strong><\/h3>\nObserving the status of quantitative model (basic grade) rating through the shift matrix, the average 1-year maintenance rate from 2005-2023 is about 40-60%, and the volatility of low risk is small compared to the high risk. Through the expert judgment rating, it can effectively improve the ability and stability of the long-term investment and credit index.<\/p>\n<\/figure>\n<\/div>\n<\/span>TEJ CCRQM<\/h2>\nFacing the special characteristics of Chinese enterprises: asset restructuring, shell-listing, financial window-dressing, and the outbreak of cash fraud cases in recent years, TEJ have been reflecting on and revising\u00a0CCRQM<\/mark><\/strong>\u2018s methodology. We continue to provide solutions for you to enhance your early warning capability!<\/p>\n\nStart Managing Corporate Credit Risk of Investment Portfolio
\nEvaluate Credit Risk More Efficiently Today!<\/strong><\/a><\/div>\n<\/div>\n<\/div>\n<\/figure>\n","protected":false},"excerpt":{"rendered":"CCRQM The opacity of Chinese corporate information and […]<\/p>\n","protected":false},"featured_media":0,"template":"","tags":[155,160],"product_category":[4],"class_list":["post-3377","product","type-product","status-publish","hentry","tag-credit-risk-solution","tag-ccrqm","product_category-credit-risk-solution"],"acf":{"p_introduction":"
CCRQM<\/h2>\r\n
The opacity of Chinese corporate information and the inflated ratings in the bond market have always been the biggest pain in our cooperation with Chinese corporations. From the complexity of data collection to the credibility of data analysis, data limitations of all sizes affect our ability to assess the credit risk of corporations from publicly available information.<\/p>\r\n
In 2013, TEJ published\u00a0China Corporate Credit Quantitative Model<\/strong>,\u00a0CCRQM<\/mark><\/strong>, a credit risk rating system for evaluating China Corporate\u2019s credit. CCRQM is based on quantitative models and data generated from financial reports. These ratings are updated every half-year.<\/p>\r\nTEJ adopts the data from financial reports to create logistic regression and expert judgment to decide the best combination of variables and variable weights in models. In this way, the credit scoring model of Scorecard generates user-friendly credit scores.<\/p>\r\n\r\n
<\/span>TEJ Solution<\/h2>\r\n<\/figure>\r\n<\/div>\r\n<\/span>\u2728Key Features<\/h3>\r\n\r\n \t- Listed corporate entities in Shanghai and Shenzhen are\u00a0the main objects.<\/li>\r\n \t
- Opened and transparent quantitative model ratings.<\/li>\r\n \t
- Based on TEJ standardized and comparable financial data.<\/li>\r\n \t
- Rating\u00a0results are updated regularly upon the release of new financial reports.<\/li>\r\n<\/ul>\r\n
<\/span>\u2728Key Advantages<\/h3>\r\n\r\n \t- Distinguished credit ratings.<\/li>\r\n \t
- Neutral credit ratings by third parties.<\/li>\r\n \t
- Regular publication of factors modification and validity test of the model.<\/li>\r\n<\/ul>\r\n
<\/span>\u2728Key Benefits<\/h3>\r\n\r\n \t- Bankers\uff1a Enhance credit risk evaluation efficiency.<\/li>\r\n \t
- Investors\uff1a Manage investment portfolio\u00a0credit risk.<\/li>\r\n \t
- Corporatations\uff1a Evaluate changes in credit risk efficiently.<\/li>\r\n<\/ul>\r\n
<\/span>CCRQM Model Variables<\/h2>\r\nThe model primarily utilizes publicly available financial statement data, applying logistic stepwise regression combined with expert judgment to select the optimal variable combinations and their respective weights.\r\nThese are then converted into user-friendly credit scores using a scorecard credit scoring model.<\/p>\r\n\r\nScorecard Credit Scoring Model<\/figcaption><\/figure>\r\n
<\/span>CCRQM Model Variables<\/h2>\nThe model primarily utilizes publicly available financial statement data, applying logistic stepwise regression combined with expert judgment to select the optimal variable combinations and their respective weights.
\nThese are then converted into user-friendly credit scores using a scorecard credit scoring model.<\/p>\nScorecard Credit Scoring Model<\/figcaption><\/figure>\n\nStart Managing Corporate Credit Risk of Investment Portfolio
\nEvaluate Credit Risk More Efficiently Today!<\/span><\/span><\/p>\nContact Us<\/a><\/strong><\/div>\n<\/div>\n<\/span>FORMULA Grade: Calculate the composite score to determine the corresponding grade<\/strong><\/h3>\nRisk category corresponds to a specific grade<\/figcaption><\/figure>\n<\/span>BASIC Grade<\/strong><\/h3>\nAdjustment of the formula grade to the basic grade by using financial disclosure and group as the threshold limit.<\/p>\nRisk Assessment Factors for BASIC Grade<\/figcaption><\/figure>\n<\/span>Warning ability\/Discriminatory power (ROC)>90% or above:<\/strong><\/h3>\nThe average default risk differentiation ability of 90.24% over the last 10 years (2014~2023) indicates that the quantitative model (threshold level) has a high differentiation ability regardless of the modeling period.<\/p>\n<\/figure>\n<\/div>\n<\/span>Stability: One-year average transition matrix of CCRQM (2005-2023)<\/strong><\/h3>\nObserving the status of quantitative model (basic grade) rating through the shift matrix, the average 1-year maintenance rate from 2005-2023 is about 40-60%, and the volatility of low risk is small compared to the high risk. Through the expert judgment rating, it can effectively improve the ability and stability of the long-term investment and credit index.<\/p>\n<\/figure>\n<\/div>\n<\/span>TEJ CCRQM<\/h2>\nFacing the special characteristics of Chinese enterprises: asset restructuring, shell-listing, financial window-dressing, and the outbreak of cash fraud cases in recent years, TEJ have been reflecting on and revising\u00a0CCRQM<\/mark><\/strong>\u2018s methodology. We continue to provide solutions for you to enhance your early warning capability!<\/p>\n\nStart Managing Corporate Credit Risk of Investment Portfolio
\nEvaluate Credit Risk More Efficiently Today!<\/strong><\/a><\/div>\n<\/div>\n<\/div>\n<\/figure>\n","protected":false},"excerpt":{"rendered":"CCRQM The opacity of Chinese corporate information and […]<\/p>\n","protected":false},"featured_media":0,"template":"","tags":[155,160],"product_category":[4],"class_list":["post-3377","product","type-product","status-publish","hentry","tag-credit-risk-solution","tag-ccrqm","product_category-credit-risk-solution"],"acf":{"p_introduction":"
CCRQM<\/h2>\r\n
The opacity of Chinese corporate information and the inflated ratings in the bond market have always been the biggest pain in our cooperation with Chinese corporations. From the complexity of data collection to the credibility of data analysis, data limitations of all sizes affect our ability to assess the credit risk of corporations from publicly available information.<\/p>\r\n
In 2013, TEJ published\u00a0China Corporate Credit Quantitative Model<\/strong>,\u00a0CCRQM<\/mark><\/strong>, a credit risk rating system for evaluating China Corporate\u2019s credit. CCRQM is based on quantitative models and data generated from financial reports. These ratings are updated every half-year.<\/p>\r\nTEJ adopts the data from financial reports to create logistic regression and expert judgment to decide the best combination of variables and variable weights in models. In this way, the credit scoring model of Scorecard generates user-friendly credit scores.<\/p>\r\n\r\n
<\/span>TEJ Solution<\/h2>\r\n<\/figure>\r\n<\/div>\r\n<\/span>\u2728Key Features<\/h3>\r\n\r\n \t- Listed corporate entities in Shanghai and Shenzhen are\u00a0the main objects.<\/li>\r\n \t
- Opened and transparent quantitative model ratings.<\/li>\r\n \t
- Based on TEJ standardized and comparable financial data.<\/li>\r\n \t
- Rating\u00a0results are updated regularly upon the release of new financial reports.<\/li>\r\n<\/ul>\r\n
<\/span>\u2728Key Advantages<\/h3>\r\n\r\n \t- Distinguished credit ratings.<\/li>\r\n \t
- Neutral credit ratings by third parties.<\/li>\r\n \t
- Regular publication of factors modification and validity test of the model.<\/li>\r\n<\/ul>\r\n
<\/span>\u2728Key Benefits<\/h3>\r\n\r\n \t- Bankers\uff1a Enhance credit risk evaluation efficiency.<\/li>\r\n \t
- Investors\uff1a Manage investment portfolio\u00a0credit risk.<\/li>\r\n \t
- Corporatations\uff1a Evaluate changes in credit risk efficiently.<\/li>\r\n<\/ul>\r\n
<\/span>CCRQM Model Variables<\/h2>\r\nThe model primarily utilizes publicly available financial statement data, applying logistic stepwise regression combined with expert judgment to select the optimal variable combinations and their respective weights.\r\nThese are then converted into user-friendly credit scores using a scorecard credit scoring model.<\/p>\r\n\r\nScorecard Credit Scoring Model<\/figcaption><\/figure>\r\n
\nThese are then converted into user-friendly credit scores using a scorecard credit scoring model.<\/p>\n
Start Managing Corporate Credit Risk of Investment Portfolio Adjustment of the formula grade to the basic grade by using financial disclosure and group as the threshold limit.<\/p>\n The average default risk differentiation ability of 90.24% over the last 10 years (2014~2023) indicates that the quantitative model (threshold level) has a high differentiation ability regardless of the modeling period.<\/p>\n Observing the status of quantitative model (basic grade) rating through the shift matrix, the average 1-year maintenance rate from 2005-2023 is about 40-60%, and the volatility of low risk is small compared to the high risk. Through the expert judgment rating, it can effectively improve the ability and stability of the long-term investment and credit index.<\/p>\n Facing the special characteristics of Chinese enterprises: asset restructuring, shell-listing, financial window-dressing, and the outbreak of cash fraud cases in recent years, TEJ have been reflecting on and revising\u00a0CCRQM<\/mark><\/strong>\u2018s methodology. We continue to provide solutions for you to enhance your early warning capability!<\/p>\n CCRQM The opacity of Chinese corporate information and […]<\/p>\n","protected":false},"featured_media":0,"template":"","tags":[155,160],"product_category":[4],"class_list":["post-3377","product","type-product","status-publish","hentry","tag-credit-risk-solution","tag-ccrqm","product_category-credit-risk-solution"],"acf":{"p_introduction":" The opacity of Chinese corporate information and the inflated ratings in the bond market have always been the biggest pain in our cooperation with Chinese corporations. From the complexity of data collection to the credibility of data analysis, data limitations of all sizes affect our ability to assess the credit risk of corporations from publicly available information.<\/p>\r\n In 2013, TEJ published\u00a0China Corporate Credit Quantitative Model<\/strong>,\u00a0CCRQM<\/mark><\/strong>, a credit risk rating system for evaluating China Corporate\u2019s credit. CCRQM is based on quantitative models and data generated from financial reports. These ratings are updated every half-year.<\/p>\r\n TEJ adopts the data from financial reports to create logistic regression and expert judgment to decide the best combination of variables and variable weights in models. In this way, the credit scoring model of Scorecard generates user-friendly credit scores.<\/p>\r\n\r\n The model primarily utilizes publicly available financial statement data, applying logistic stepwise regression combined with expert judgment to select the optimal variable combinations and their respective weights.\r\nThese are then converted into user-friendly credit scores using a scorecard credit scoring model.<\/p>\r\n\r\n
\nEvaluate Credit Risk More Efficiently Today!<\/span><\/span><\/p>\n<\/span>FORMULA Grade: Calculate the composite score to determine the corresponding grade<\/strong><\/h3>\n
<\/span>BASIC Grade<\/strong><\/h3>\n
<\/span>Warning ability\/Discriminatory power (ROC)>90% or above:<\/strong><\/h3>\n
<\/figure>\n<\/span>Stability: One-year average transition matrix of CCRQM (2005-2023)<\/strong><\/h3>\n
<\/figure>\n<\/span>TEJ CCRQM<\/h2>\n
\nEvaluate Credit Risk More Efficiently Today!<\/strong><\/a><\/div>\n<\/div>\n<\/figure>\n","protected":false},"excerpt":{"rendered":"CCRQM<\/h2>\r\n
<\/span>TEJ Solution<\/h2>\r\n
<\/figure>\r\n<\/span>\u2728Key Features<\/h3>\r\n
\r\n \t
<\/span>\u2728Key Advantages<\/h3>\r\n
\r\n \t
<\/span>\u2728Key Benefits<\/h3>\r\n
\r\n \t
<\/span>CCRQM Model Variables<\/h2>\r\n