Chinese Stock Screen Combining Turnover, Trading Attention, and Profit Growth

Summary

This Chinese equity screen selects stocks with turnover between 3% and 12%, a flag indicating appearance on the previous day's market leaderboard, and year-over-year growth in net profit attributable to parent-company shareholders above 20% and at most 100%. The article presents this as a way to combine trading activity and market attention with a measure of earnings growth.

It includes formula and Python examples, but no backtest, comparison, or return evidence. The article notes that the screen focuses on short-term profitability and trading activity while omitting longer-term business prospects and overall market direction; this could narrow the candidate set or lead it away from broad market performance. It recommends adding longer-term operating and risk measures and considering adjustments to the filter ranges. Profit-growth calculations can also require care when the prior-period figure is zero or negative, a data-handling issue the examples do not address.

Key ideas

• The screen uses turnover from 3% to 12% and a flag for a previous-day leaderboard appearance.
• It filters for year-over-year parent-attributable net profit growth above 20% and up to 100%.
• The article presents trading activity and earnings growth as complementary selection inputs.
• No backtest or return evidence is provided, and the method omits long-term business and market context.
• Profit-growth calculations need careful handling when the comparison-period earnings are zero or negative.

Tags

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