A Chinese Stock Screen Using Turnover, Three Declines, and Opening Gaps

Summary

This Chinese-language post describes an equity selection rule that combines turnover with recent price behavior. It seeks stocks whose turnover is between 3% and 12%, whose prices have declined for three consecutive days, and whose opening move is less than 6% relative to the previous close. The article also gives example screening logic and Python-oriented implementation guidance, though the snippets contain inconsistencies that could prevent them from implementing the stated conditions reliably.

The author characterizes the approach as a simple screen and suggests adding further measures, such as trading volume or price-to-book value, to broaden the analysis. No historical test, benchmark, sample of selected stocks, or evidence of returns is presented. The stated filters therefore define a candidate selection process, not a demonstrated profitable strategy; the post also does not explain how to enter, exit, or size positions after screening.

Key ideas

• The screen selects stocks with turnover between 3% and 12%.
• It looks for a three-day sequence of declines and an opening move under 6% versus the prior close.
• The post provides example formulas and Python implementation guidance, but the snippets have inconsistencies.
• The author suggests adding measures such as volume and price-to-book value.
• No backtest or evidence of investment performance is included.

Tags

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