A-Share Momentum Screen with Profit Growth and Institutional Ownership Ranking

Summary

This A-share selection method looks for turnover between 3% and 12%, year-over-year growth in net profit attributable to parent-company shareholders above 20% and no more than 100%, non-ST status, and a five-day rising-price condition described as a limit-up strategy. It then ranks qualifying stocks by institutional ownership and selects the top five. The document includes sample indicator logic and Python-style implementation references, but reports no backtest or investment performance evidence.

The stated rationale is to combine trading activity, earnings growth, a recent price advance, and institutional ownership. The author notes that the method does not account for valuation and relies substantially on short-term market behavior. Excluding ST stocks may also omit companies that could recover. Suggested improvements include considering valuation multiples and company size. The selection conditions and ranking rule are described, but the suggested additions are not tested, and the screen itself does not establish that selected stocks will perform well.

Key ideas

• The screen combines turnover, a specified range of year-over-year net profit growth, non-ST status, and a five-day price advance.
• It ranks qualifying stocks by institutional ownership and takes the top five.
• The document provides implementation examples but no reported performance evidence.
• The author flags missing valuation analysis and the limitations of excluding ST stocks.

Tags

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