Credit Risk Trends of Chinese Listed Companies – April 2022

With the pandemic and other ongoing factors, investors are less confident in the economic rebound and the market performance is fragile. In March, the risks of various sectors continued to rise and even saw an accelerating trend. Financials, Communication Services and Industrial sectors posted an increase in risks by more than 50%. It is particularly worth noting that all sectors saw a double-digit increase in risks in March, reflecting the current extreme market sentiment and drawing the attention of investors. 

Key highlights:  

• Overall, sectors with a higher increase in risk in March have already experienced a relatively significant increase in risk in February, including the Financials, Communication Services, Consumer Discretionary sectors, among others, and this trend continued for these sectors in March. 
• Similar to the risk performance, the level of market returns of various sectors remained unsatisfactory this month.