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.