“PanAgora Asset Management, a $45 billion quant fund based in Boston, has been creative in using natural language processing to analyze Chinese equities. Its machine-learning tool spiders through online forum posts by retail Chinese traders and identifies cyber slang words they use to avoid government censors, who might crack down on negative language, such as discussions of poor earnings results. Canny Chinese bloggers, for example, replace the word “rubbish” with a phonetically similar expression, “spicy chicken.” PanAgora’s model identifies such similar-sounding words and the context in which they appear to gauge sentiment about Chinese companies.”
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