Skill424 repo starsupdated 3d ago

china-dcf-model

This skill provides discounted cash flow valuation modeling specifically adapted for Chinese A-share equities, using market parameters such as China's 10-year government bond yield as the risk-free rate, China-specific equity risk premiums of 6-8%, and terminal growth rates of 3-4%. Use it when valuing mainland Chinese companies trading on the Shanghai or Shenzhen exchanges, requiring adjustments for Chinese tax rates, revenue denominations in yuan, and value-added tax considerations that differ from Western DCF approaches.

View source Repository: claude-for-financial-services-cn

Install in Claude Code

Copy

git clone --depth 1 https://github.com/jwangkun/claude-for-financial-services-cn /tmp/china-dcf-model && cp -r /tmp/china-dcf-model/agent-plugins/china-model-builder/skills/china-dcf-model ~/.claude/skills/china-dcf-model

Then start a new Claude Code session; the skill loads automatically.

Definition

SKILL.md

# china-dcf-model

> **Note:** This skill is an alias/wrapper for `china-dcf`. For full DCF modeling guidance, see `china-dcf/SKILL.md`.

## Purpose

Provide access to **A股DCF估值** — discounted cash flow valuation adapted for Chinese market parameters.

## Quick Reference

### Core DCF Parameters (China)

| Parameter | Typical Value | Source |
|-----------|--------------|--------|
| Risk-free rate | 2.0-3.0% | China 10Y CGB yield |
| Equity risk premium | 6-8% | China-specific |
| Beta | 0.8-1.2 | A-share historical |
| Cost of debt | 3-6% | China corporate bond yields |
| Terminal growth | 3-4% | China GDP long-term |
| Tax rate | 25% (15% for 高新) | CAS |

### Key Differences from US DCF

| Aspect | US | China (A-share) |
|--------|-----|-----------------|
| Risk-free rate | UST 10Y | China 10Y CGB |
| ERP | 5-6% | 6-8% (higher for EM) |
| Terminal growth | 2-3% | 3-4% |
| Tax rate | 21% (federal) | 25% (15% for 高新) |
| Currency | USD | CNY |
| Revenue units | $M | 万元 / 亿元 |

### Quick Workflow

1. **Project FCF** — 5-year explicit period
2. **Calculate WACC** — Use China parameters
3. **Discount FCF** — PV of explicit period
4. **Terminal value** — Gordon growth or exit multiple
5. **Enterprise value** — Sum of PVs
6. **Equity value** — EV - Net debt + Minority interest
7. **Value per share** — Equity value / Shares

### Common Pitfalls

| Pitfall | China-Specific Fix |
|---------|-------------------|
| Using US risk-free rate | Use China 10Y CGB |
| Wrong tax rate | Verify 高新 enterprise status |
| Revenue in USD | Convert to CNY |
| Ignoring 增值税 | Revenue should be net of VAT |
| Western terminal growth | Use 3-4% for China |

### For Full Details

See: `china-dcf/SKILL.md`

## Quality Checks

- [ ] All parameters China-appropriate
- [ ] FCF projections reasonable
- [ ] WACC components sourced
- [ ] Terminal growth < GDP growth
- [ ] Sensitivity analysis included