Chinese Stock Screen Combining Profit Growth, Turnover, and Three Down Closes

Summary

This stock-selection recipe combines fundamental and price conditions. It screens for turnover between 3% and 12%, year-over-year growth in net profit attributable to shareholders of more than 20% and up to 100%, and three consecutive sessions in which the close is below the previous close. The post frames the falling closes as a technical check alongside the profit-growth filter. Its example code also includes volume and data-period conditions, which do not fully align with the written criteria.

The article suggests adding valuation or momentum measures such as price-to-earnings, price-to-book, or RSI, but supplies no comparative analysis. It reports no backtest, selected-stock results, or evidence that the combination suits long-term investing. It warns that technical signals can be distorted by unusual market moves or company-specific events. The screen is a rule-based candidate filter; data definitions and discrepancies between the prose and sample implementation need review before use.

Key ideas

• The stated screen combines turnover of 3% to 12% with specified year-over-year attributable net profit growth.
• It additionally requires three consecutive daily closes below their respective prior closes.
• The sample code includes extra volume and data conditions that differ from the written screen.
• The article proposes combining more fundamental and technical measures, but tests none of them.
• It provides no performance evidence and notes event and market-volatility risks.

Tags

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