Chinese Equity Screen Combining Turnover, Profit Growth, and Buying Activity

Summary

This Chinese equity screening method selects stocks with turnover between 3% and 12%, year-over-year growth in net profit attributable to parent-company shareholders above 20% and no higher than 100%, and a daily increase-in-holdings ratio above 5%. The article frames turnover as a measure of trading activity, earnings growth as a business-performance signal, and the holdings measure as an indication of incoming capital. It suggests the combination may suit medium- to long-term stock selection, though it does not provide a defined holding or rebalancing rule.

The post includes formula and Python examples intended to implement the filters, but reports no backtest, portfolio results, or benchmark comparison. It warns that the buying-activity measure may be inflated or unreliable and that the screen omits valuation measures such as price-to-earnings and price-to-book ratios. The code also gives specific data-source and period choices that may not align with the stated general criteria, so its implementation should be checked before use. The author proposes adding trend indicators and fundamental or valuation factors as possible refinements.

Key ideas

• The screen requires turnover between 3% and 12%.
• It selects year-over-year parent-attributable net profit growth above 20% and up to 100%.
• It also requires a daily increase-in-holdings ratio greater than 5%.
• The article cautions that buying-activity data can be unreliable and that valuation factors are absent.
• The post supplies example formulas and code but no evidence of historical performance.

Tags

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