In August 2017, Dagong and Shanghai Clearing House (SHCH) successfully completed a research project through collaboration. At the request of SHCH, Dagong has accomplished, through a year-long research, a series of achievements such as risk identifications encompassing global industries in banking, security and insurance, comparison of risk evaluation methodologies, establishment of credit risk appraisal system, as well as design of credit risk tracing and evaluating system etc., which facilitates SHCH’s business acting as a central counterparty (CCP).
Shanghai Clearing House, also known as Shanghai Clearing House Co., Ltd, directed by the People’s Bank of China (PBC), is vital to China’s financial market system. As a Qualified Central Counterparty (QCCP) recognized by the PBC and one of the central security depositories, it possesses significant market position and clout in the entire financial market.
In May 2016, Dagong and SHCH decided to conduct the concerted research on the methodology for assessing credit risks of banks, securities and insurance companies in the global market in order to build an assessment system. The system was designed to be easily operated, with complete structure, distinct features and solid technological foundation; and assessment results should be comparable. The project takes into consideration of SHCH’s business and was carried out with Dagong’s expertise in credit rating and credit risk assessment in financial industry.
Dagong highly values the project, for which it designated its experienced Financial Institution Department, specializing in rating financial organizations and technology research on relevant fields, to set up a research team. Revolving around the project and following the research theme and schedule as jointly set, the team finished the four-phased research from September 2016 to August 2017, bearing tomes of research reports, three assessment models for credit risk and their operating instructions, along with sample test results of 127 financial organizations at home and abroad. The fruits of the research passed the mid-term and the final reviews of SHCH in March and August 2017 respectively, and were submitted to it in August 2017.
The research project is both one of the important research projects of SHCH of the year and one of the major externally-oriented collaborative research projects of Dagong. Dagong earned SHCH’s trust with its professionalism to undertake and complete the project; the cooperation, bonding Dagong and SHCH, is significant to Dagong’s branding and expertise enhancement. (Zhu Yinlong/ Dagong Credit)