Credit Risk Trends of Chinese Listed Companies – March 2022

After the Spring Festival, the risk performance of listed companies in various sectors saw significant polarization. Sectors including Communication Services, Health Care, Financials and Consumer Staples posted an increase in the Probability of Default Market Signal (PDMS) by more than 30% in February, among which the Communication Services and Financials sectors were the two sectors which showed the largest decrease in risks in January. This shows that under the current market style, it is difficult to maintain either an increase or decrease trend in risks. 

Key highlights:  

• Sectors including Materials, Utilities and Energy showed a decrease in risks of more than 20% in February, accounting for 41.92%, 38.18% and 20.36% respectively. 
• Industrials and Real Estate saw relatively stable risk performance from January to February this year without experiencing significant fluctuations.
• The overall market sentiment tends to be conservative, with 20 sub-industries posting an increase in risks of more than 20%.