Summary

We have developed a China Vulnerability Sentiment Index using Big Data

The CVSI index allows us to track the 4 different vulnerability components: SOEs, Shadow Banking, Housing Bubble & FX speculative

Robustness Check: “prior” inclusion of Sentiment Indicators is “Posterior” confirmed through Bayesian Model Averaging (BMA)

No Systematic Bias between English & Chinese Sentiment in Local and foreign media but transitory deviations can affect market sentiment

Additional tools to track Risk in Real Time, with High Granularity and Georeferenced
Information.