Since the beginning of 2022, the market performance of Chinese listed companies in all sectors has been unsatisfactory, with a negative median income level across all sectors in January. However, under such market performance, the risk performance of different sectors varies. Risk performance in most sectors is relatively stable. 

Key highlights:  

• Except for the Utilities sector in which the Probability of Default Market Signal (PDMS) in January rose sharply by 33.85% compared with December last year, other sectors showed a decrease in risks, among which the Materials, Communication Services and Financials sectors showed the most obvious downward trend in risks.
• In terms of absolute risk, the risk ranking of all sectors in January was still relatively stable, and sectors with higher risks included Materials, Utilities and Energy.
• Sectors with the largest declines in median returns included Healthcare, Communication Services and Consumer Staples, among which the Communication Services sector posted the highest return in December 2021.