‘Alternative Data’ Investment in China for Moody’s
November 7 2020
Ratings agency and analytics provider Moody’s Corporation has paid cash for a minority stake in MioTech, a provider of alternative data and insights for the environmental, social and governance (ESG) and ‘know your customer’ (KYC) markets in Greater China.
Moody’s, which has over 11,400 employees in more than 40 countries, says the investment reflects its ‘commitment to providing China’s evolving financial markets with innovative ESG and KYC solutions’.
MioTech uses artificial intelligence to track and scan alternative data sources relevant to ESG and KYC, supply chains and financial information for more than 800,000 public and private companies in China. Trawling unstructured data to produce insights for the likes of portfolio managers, research analysts and risk managers, its sources include news, social media and disclosure.
Following the deal, MioTech will continue to operate as an independent entity, while Moody’s and its affiliates look to incorporate its offerings ‘to streamline analytical processes, monitor portfolios, inform risk assessments, accelerate product developments, and deepen coverage of China’.
According to Min Ye, MD and Head of International for Moody’s, the partnership will provide ‘valuable data, analytics, and insights to China’s domestic risk and investment markets’. Jason Tu, CEO and co-founder of MioTech comments: ‘MioTech looks forward to an exciting partnership with Moody’s. Moody’s deep industry know-how will further strengthen MioTech’s data and technology across different sectors and geographies’.
Web sites: www.moodys.com and www.miotech.com/en-us .
