A Chinese Equity Screen Combining Trading Activity and Valuation

Summary

This Chinese-language post proposes a short-term stock selection screen using daily amplitude, a measure described as today’s controlling-shareholder change, and a ratio combining yesterday’s turnover with today’s auction volume relative to yesterday’s volume. Its final version adds a market-cap floor and valuation filters for price-to-earnings, price-to-book, and return on equity. The post includes example indicator formulas and Python-like implementation guidance, and suggests ranking selected stocks by recent price change.

The author argues that the activity measures may help identify short-term opportunities, but supplies no backtest, market comparison, or realized performance evidence. The post itself flags limitations from indicator coverage, short-term focus, and market noise, and suggests adding fundamental or technical inputs or using machine learning. The formulas and code are presented as references and may need adaptation; the article does not establish that the proposed thresholds generalize or that the signals predict returns.

Key ideas

• The screen combines price amplitude and a controlling-shareholder activity measure with a turnover and auction-volume ratio.
• The final selection logic adds minimum market capitalization and limits on valuation ratios, with a minimum return on equity.
• Example formulas and a Python-style outline show how the criteria could be applied and stocks ranked.
• The post provides no performance test and acknowledges that short-term indicators may be noisy and incomplete.
• The proposed thresholds require validation and may not transfer across periods or market conditions.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.