china-dcf-model

name	china-dcf-model
description	Discounted cash flow (DCF) valuation model for A-share equities. This alias skill redirects to china-dcf, which provides comprehensive DCF modeling adapted for Chinese market conventions. Triggers on "A股DCF模型", "DCF估值", "DCF model China", "现金流折现", "discounted cash flow A-share", or "DCF [company]".

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