Chinese Stock Screen Combining Large-Order Flow and Profit Growth
Summary
This Chinese equity screening proposal combines a daily amplitude threshold with large-order net volume above 0.05 for at least three consecutive days. It also requires year-over-year growth in net profit attributable to parent-company shareholders to be above 20% and no greater than 100%. The note presents the rules as a blend of technical and fundamental filters intended to identify stocks with buying pressure and improving earnings. It includes formula and Python examples, along with optional filters for return on equity, current ratio, and debt to assets.
The author cautions that profit growth can be volatile and affected by industry life cycles, and that fundamental conditions are complex. The examples are not fully consistent: the prose specifies consecutive daily flow readings, while the sample calculation aggregates a rolling volume measure; growth thresholds also appear in different scales. No backtest or return evidence is supplied, so the proposal does not establish that the screen predicts performance.
Key ideas
- The proposed screen requires a daily amplitude above one and large-order net volume above 0.05 for at least three consecutive sessions.
- It also selects for year-over-year parent-company net profit growth above 20% and at most 100%.
- Optional filters include ROE, current ratio, and debt relative to assets.
- Profit growth may be volatile and should be interpreted in the context of the company's industry life cycle.
- The sample calculations differ from parts of the stated rule, and no performance evaluation is reported.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.