A Low-Priced, Small-Cap Chinese Stock Screen Using Turnover and Profitability

Summary

The document proposes screening A-share equities for turnover between 3% and 12%, circulating market capitalization below 10 billion yuan, no reported losses, and a share price below 12 yuan. It frames the rules as a way to identify lower-priced, smaller companies with a specified level of trading activity. The post includes a stock-selection formula and a Python example that queries financial and daily market data.

The accompanying discussion acknowledges that these filters rely heavily on price and basic eligibility conditions. They do not adequately assess business quality, industry prospects, or broader fundamentals, so the screen may include companies with poor long-term prospects. The suggested improvement is to combine the initial filters with a fuller review of company operations, fundamentals, and industry conditions. The document gives no backtest, return evidence, or detailed definition of how profitability is measured, and its sample code uses particular historical dates and data-field assumptions.

Key ideas

• The proposed screen requires turnover of 3% to 12%, market capitalization below 10 billion yuan, no losses, and a share price under 12 yuan.
• The post supplies formula and Python examples for applying the filters to Chinese A-share data.
• Low share price alone does not establish that a company is undervalued or financially sound.
• The author recommends adding fundamental, operating, and industry analysis.
• No backtest or investment performance evidence is presented.

Tags

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