What is CHINA FUND Probability of Financial Distress (%)?
Probability of Financial Distress (%) measures the probability that a company will go bankrupt in the upcoming year given its current financial position. A higher ratio indicates a larger probability of bankruptcy for the company, while a lower ratio indicates a healthier fundamental. As of today, CHINA FUND's Probability of Financial Distress (%) is 0.00%.
Like the Altman Z-Score, the PFD measures a company's bankruptcy risk. However, the main drawback of the Z-score is it does not apply to banks and insurance companies. According to Investopedia, the concept of "working capital" does not apply to banks and insurance companies, as financial institutions do not have typical current assets or current liabilities like inventories or accounts payable.
Competitive Comparison of CHINA FUND's Probability of Financial Distress (%)
For the Asset Management subindustry, CHINA FUND's Probability of Financial Distress (%), along with its competitors' market caps and Probability of Financial Distress (%) data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
CHINA FUND's Probability of Financial Distress (%) Distribution in the Asset Management Industry
For the Asset Management industry and Financial Services sector, CHINA FUND's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where CHINA FUND's Probability of Financial Distress (%) falls into.
CHINA FUND Probability of Financial Distress (%) Calculation
Probability of Financial Distress (%) (PFD) was developed by John Campbell, Jens Hilscher and Jan Szilagyi in their Search of Distress Risk. It measures the probability that a company will go bankrupt within the next 12 months given its current financial position.
The Probability of Financial Distress (%) was obtained by a logit probability model based on eight explanatory variables. The logit formula to compute the probability of financial distress (LPFD) is given below:
| LPFD | = | -20.12 * NIMTAAVG | + | 1.60 * TLMTA | - | 7.88 * EXRETAVG | + | 1.55 * SIGMA | - | 0.005 * RSIZE | - | 2.27 * CASHMTA | + | 0.070 * MB | - | 0.09 * PRICE | - | 8.87 |
| = | -10.22 |
The Probability of Financial Distress (%) (PFD) was then obtianed by:
| PFD | = | 1 | / | (1 + e^(-LPFD)) | * | 100% |
| = | 0.00% |
The eight explanatory variables are:
1. NIMTAAVG = Net Income to Market Total Assets
*Note that for companies reported quarterly, geometrically declining weighted quarterly Net Income data in latest four quarters are used.
2. TLMTA = Total liabilities to Market Total Assets
3. CASHMTA = Cash to Market Total Assets
For banks, CASHMTA is measured as:
4. EXRETAVG = Excess Return compared to the S&P 500
EXRETAVG is the weighted excess return compared to the S&P 500 in past 12 month. Geometrically declining weights are imposed on the monthly excess return to reflect lagged information. The weight is halved each quarter.
5. SIGMA = Standard Deviation of Daily Returns
For sigma, we use the annualized standard deviation of a company's returns over the past 92 days (or 63 trading days).
6. RSIZE = Relative Size
| RSIZE | = | log (Market Cap | / | Total Market Cap of S&P 500 companies) |
7. MB = Market to Adjusted Book Equity Ratio
8. PRICE
PRICE is measured as the log of the stock price, capped at log(15).
CHINA FUND Business Description
Traded in Other Exchanges
N/A
Address
C/o Brown Brothers Harriman & Co, 50 Post Office Square, Boston, MA, USA, 02110
CHINA FUND INC is a non-diversified, closed-end management investment company. Its investment objective is a long-term capital appreciation which it seeks to achieve by investing in equity securities with trading in China and outside China. It invests in various industries such as Insurance, Entertainment, Machinery, Electrical Equipment, Beverages, Hotels, Restaurants and Leisure among others.
Executives
| Yan Hu |
director |
60 VICTORIA EMBANKMENT, LONDON X0 EC4Y 0JP |
| Theresa Noriega-lum |
officer: President |
4 EMBARCADERO CENTER, SUITE 550, SAN FRANCISCO CA 94111 |
| Iwanicki George John Jr |
director |
8K THORMAN LANE, HUNTINGTON NY 11743 |
| Julian Reid |
10 percent owner |
C/O BROWN BROTHERS HARRIMAN, 50 POST OFFICE SQUARE, BOSTON MA 02110 |
| City Of London Investment Group Plc |
10 percent owner |
77 GRACECHURCH STREET, LONDON X0 EC3V0AS |
| Frank L Wheeler |
officer: President |
FOUR EMBARCADERO CENTER, SUITE 550, SAN FRANCISCO CA 94111 |
| Michael F Holland |
director |
|
| Richard Silver |
10 percent owner |
C/O STATE STREET BANK AND TRUST COMPANY, ONE LINCOLN STREET, BOSTON MA 02111 |
| City Of London Investment Management Co Ltd |
10 percent owner |
77 GRACECHURCH STREET, LONDON X0 EC3V0AS |
| Heiko Mildner |
other: Affiliated Person |
1633 BROADWAY, NEW YORK NY 10019 |
| Kathleen C. Thompson |
other: Affiliated Person |
1633 BROADWAY, NEW YORK NY 10019 |
| Jeffrey D Parker |
other: See remarks |
1345 AVENUE OF THE AMERICAS, NEW YORK NY 10105 |
| Douglas Eu |
other: SEE REMARKS |
C/O ALLIANZ GLOBAL INVESTORS U.S. LLC, 1633 BROADWAY, NEW YORK NY 10019 |
| William Grau |
other: SEE REMARKS |
C/O ALLIANZ GLOBAL INVESTORS U.S. LLC, 1633 BROADWAY, NEW YORK NY 10019 |
| Laura F. Dell |
officer: Treasurer |
100 HUNTINGTON AVENUE, CPH 0326, BOSTON MA 02116 |
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