Robo-Sukuk pricing for Chinese equities

• DOI: 10.1016/j.bir.2022.06.002
• Publication Date: 2022-06-14T01:47:30Z
• Authors: Klemens Katterbauer; Hassan Syed; Laurent Cleenewerck; Sema Yilmaz Genc
• Keywords: Sukuk; Equity; Financial instrument

Sukuks have assumed increasing importance in the global financial industry, with both institutional and retail investors realizing benefits of Sukuk, terms their adherence to Islamic principles, as well being more stable robust. The growing Sukuk markets has happened simultaneously significant development China. With crisis other recent events reducing trust confidence existing system structures, products received great attention due connection real assets risk-sharing. While instruments differ significantly from conventional bond counterparts, pricing mostly followed methodologies. This represents a challenge characteristics are not considered, misrepresenting value associated performance Sukuk. An innovative data-driven methodology for Chinese equity market is presented. It overcomes challenges methodologies applied pricing. integrates deep learning framework estimation forecasting prices, considering factors, such cashflows, net income, stock price performance, addition textual information. Illustrated on thirty major corporations listed Hong Kong Stock Exchange, provides value-based approach partnership nature product.