Wednesday, May 18, 2011

New Feature: Our own Rating System

Tags: Own Rating System, a New Feature of Mr China

It is until now we can say that the main layout and features of our website are ready for our readers. The features which make our website unique are:

(1) In our featured website, we have independent commentary on China financial markets provided by pure local Chinese, distance ourselves from most similar websites which are actually written by foreign people. Read more About Mr China.

(2) In fact we are not just writing comments as other websites do, we also set targets of various major China market indicators on our own. That said, our contents are not purely informative but we also have quantitative targets to let our readers understand more easily how a particular change will impact the Chinese economy, investing environment and the financial market(s). Read more about: Setting our own targets in our featured website.

(3) In any case, we believe Quality is the key. As we also mentioned in our earlier article: Internal Auditing for Quality Control, we do not want to just keep writing sound attractive contents but all end up to be incorrectly predicted. We know clearly that the main purpose of our featured website is to provide true values to our readership. Therefore we have newly formed an Independent Internal Audit (IIA) Team in end-2010 to review our content accuracy and site quality. The team have already completed their first Annual (2010) Internal Audit Report in January 2011.

(4) To further assist our readers to identify the true market situation, we decide to roll out a new and very exclusive rating system on our own. Our Rating System is the latest special feature in our website that we would like to explain in more details here.

The below sample investment research report is common and you may already be very familiar with:

Today, a reputable investment firm raises its ABC company stock target price by 20% from $10 to $12, to reflect improved earnings expectation. The firm, at the same time, reduces rating of the ABC company from "Buy" to "Sell", to reflect rising costs and falling external demand factors. The firm sees potential for further .....

We understand the real reasons behind that but, we have to say: such report can be highly confusing and we simply hate writing in this way!

We, Mr China, therefore determine to establish our own rating system as we are about to release our targets of market indices like the Shanghai SSE Composite Index and Hong Kong HSI (Hang Seng Index).

From this exclusive rating system onwards, we assure that you will find our site more and more exciting!

Basically our rating system consists of 5 different ratings, they are:

Not cheap
Not expensive

Here is the graphical structure of our exclusive rating system:

Rating System of Mr China

Rating system of Mr China

The rating "reasonable" represents exactly our target value (reasonable price) of market index, with a +/- 5% tolerance.

If the current index level is over the +5% reasonable tolerance but below +15%, it will be rated as "not cheap".

If the current index level is over +15% from our target, it will no longer be just "not cheap" and has to be rated as "expensive".

The same theory applies to the ratings "not expensive" and "cheap".

Interesting? For example, if the DOW (Dow Jones Industrial Average) target was set to be 10000 (we take this arbitrary value just for convenience), the current index level of 12479 (as of yesterday 17 May 2011) should then be rated as "expensive".

Sounds simple? Our objective is to make our rating system easy to understand and user friendly.

In fact, if you are an experienced stock market trader, you will find it practical and really meaningful.

Our rating system can, of course, be applied to individual stock too.

We wish our rating system will be widely accepted by our readers and will get is own creditability.

After all, we are neither an investment firm nor a credit rating agency, and we do not have any incentive to earn from our exclusive rating information as we virtually do not have any investment product or credit-rating product to sell.

There is also another practical use of our rating system. Investors always have a question: Is the current market price cheap enough? By applying our rating system, the answer to this question is becoming easy. Say again if our DOW target is set as 10000, then when the DOW falls below 8500 we can confidentially decide that it is cheap enough to buy.

In any case, most importantly, we hope all our readers will find our rating system useful for identfying the true market situation.

We also sincerely wish all readers love to visit this special featured website, Mr China, with this newly updated layout. If you are one of them, please do not hesitate to Subscribe or Follow Mr China to join our unique Chinese investment family.

Go back to Mr China's home page.


Post a Comment

Popular Articles in this Week (Top 10)

Not What You Want?

Try More Search in Our Website Here...