Chinese Stock Screen Combining Turnover, Profit Growth, and Repeated Limit-Ups

Summary

This Chinese equity screen selects stocks with turnover between 3% and 12%, year-over-year growth in parent-company net profit above 20% and at or below 100%, and at least two limit-up days during the prior 500 days. It also excludes selected growth-market listings and describes ranking candidates by market capitalization. The post argues that repeated limit-ups may identify popular stocks, while profit growth and turnover add business-growth and trading-activity filters. It includes indicator-formula and Python examples, but reports no backtest results or evidence that the filters produce superior returns.

The author notes that the rules do not account for technical conditions and that limit-up events may have causes unrelated to durable fundamentals. It suggests adding an overbought or oversold measure and reviewing whether earnings growth can continue. The implementation examples rely on particular data fields and a simplified price-change test for limit-ups, so their accuracy depends on market rules, data quality, and consistent treatment of corporate actions. The screen is a candidate-generation method; no entry, exit, or position-sizing process is specified.

Key ideas

• The screen combines a turnover band, parent-company net-profit growth, and a minimum count of historical limit-up days.
• Repeated limit-up events are treated as a possible sign of market popularity, not proof of sound fundamentals.
• The post includes implementation examples but gives no evidence of historical or live profitability.
• The author identifies missing technical analysis and uncertainty about the causes of limit-ups as limitations.
• Further review of valuation, technical conditions, and earnings sustainability is recommended.

Tags

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