At a Glance: ChinaScope SmarTag

Basics

Content Category: Sentiment

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SmarTag is ChinaScope’s flagship news analysis engine that deconstructs unstructured Chinese language text into structured machine-readable metadata and sentiment analysis. This data brings accessibility to Chinese news by allowing users to consume and aggregate sentiment indicators for news linked to Chinese companies.

ChinaScope leverages its Mandarin language expertise to extract financial news from over 380 media outlets in near real time and tag relevant Chinese companies, products, industries, events and concepts. A positive, neutral and negative sentiment indicator is provided for both the news article and the specific company tagged to the article.

Data Overview

Asset Class: Public Companies

Data Frequency: Event-Driven

Delivery Frequency: Daily

History: Sentiment analysis reflects articles gathered using proprietary web-crawler as of 2017 and purchased news sources from 2008 to 2016.

Data Methodology

ChinaScope manages a rigorous process of news extraction, filtering, analysis and tagging to create the SmarTag product. Financial news is captured every five minutes from over 380 media outlets and over 3,200 web pages, using a proprietary web crawler. Each webpage is vetted for relevance to the financial industry and site stability. Once extraneous noise, such as advertisements, and duplicate news is removed, articles are tagged to related entities, such as companies, industries, events, products and concepts. The companies tagged include China A-shares, Hong Kong stocks and those listed on the NEEQ market, NYSE and NASDAQ.

The sentiment analysis process derives positive, negative and neutral sentiment scores at the article level and for each entity tagged to the article. In the course of standardizing this information, the Chinese language is retained, and the metadata is translated to English for widespread consumption across users and regions.

Use Cases

Sentiment Factor

• Analyze the relationship between non-neutral news sentiment and company performance to create a trading signal for Chinese companies. ChinaScope offers additional flexibility by allowing users to aggregate news across different dimensions such as company entities, products and services, events and themes, and perform volume and sentiment analyses along these lines.
  • News sentiment allows users to rapidly consume breaking news and measure market opinion of Chinese companies, industries or market, which is aided by ChinaScope’s strong coverage of China A-shares and other listed stocks.
  • Since 1 January 2017, on average approximately 70% of CSI 300 and 700 A-share stocks are mentioned every day, representing roughly 50% of the A-share tradable market cap. On a monthly average, approximately 3,100 stocks are mentioned in the news under ChinaScope’s coverage.  

Relationship Analysis

• Identify relationships between companies, products and industries through co-mentions in news articles. Leveraging individual sentiment scores provided for entities in conjunction with the article level sentiment enables deeper analysis of market trends and the industry, topic and products relevant to a given company.

The details provided above are as of January 2020.

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