Rhodium Group’s MPER China framework helps global investors identify risk associated with Chinese security issuers that arise from China’s political and economic model. Our data solution consists of two separate datasets that combine to create a holistic picture of a given security issuer: Fundamental Risk and Controversy Exposure.
Fundamental Risk
Our Fundamental Risk Score measures the risk posed to investors by an issuer’s affiliation with China’s autocratic system across three dimensions: association with military entities, ties to authoritarian government, and its affiliation with problematic economic practices that undermine the principles of open market economies. Each of these categories is further broken down into concrete metrics that allow our analysts to calculate reliable and meaningful scores. It also accounts for the outsize impact of being listed in a major sanctions regime via a Sanctions Override Score.
Controversy Exposure
Our Controversy Exposure Scores track an issuer’s risk momentum that comes from its connection to ongoing controversies across the same three dimensions—military, political, and economic. Our analysts use a range of sources—including traditional news, government publications, social media, and more—to track whether issuers are directly or indirectly implicated in negative news stories.
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