A Chinese Stock Screen Combining Amplitude, Control Changes, and Revenue Growth
Summary
The article describes a stock selection screen that combines daily price amplitude above 1, a controlling-shareholder measure whose absolute daily change exceeds 21, and operating revenue in 2021 divided by 2018 revenue above 1.1. It presents the conditions in both a formula-oriented description and sample implementations for two Chinese trading platforms, then ranks selected stocks by a funds-flow measure. The examples make the screening logic concrete, but the page does not provide a backtest, performance figures, or evidence that the screen predicts returns.
The author cautions that revenue growth alone does not establish company quality and may miss profitability, cash flow, balance-sheet strength, macroeconomic conditions, and policy effects. Suggested refinements include incorporating broader company and industry fundamentals, valuation, and technical factors, then evaluating candidates with measures such as win rate and annualized return. These are general suggestions rather than tested improvements, and the sample code is explicitly presented as requiring adaptation.
Key ideas
- The screen combines price amplitude, a controlling-shareholder change measure, and revenue growth from 2018 to 2021.
- The sample implementations rank qualifying stocks using a funds-flow measure.
- Revenue growth alone can omit profitability, cash flow, balance-sheet condition, and wider economic influences.
- The proposed additions of valuation and broader fundamental factors are suggestions, not validated results.
- The document gives no backtest evidence establishing the screen’s performance.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.