Chinese Stock Screen for Rising Moving Averages and Mid-Cap Float

Summary

This Chinese stock-selection rule filters main-board shares by turnover between 3% and 12% and circulating market capitalization between 5 billion and 10 billion yuan. It then looks for five-, ten-, and twenty-day moving averages that are each higher than their previous values, representing a short-term upward expansion in the averages. The document includes formula and Python examples of the screening conditions.

The source presents the rule as a technical trend screen, while warning that moving-average direction alone can produce mistaken selections. It identifies omitted considerations such as fundamentals, industry themes, and behavior across other time horizons, and suggests combining these with the technical signal. No backtest, realized returns, or evidence of predictive accuracy is supplied, so the screen should be understood as a rule description rather than a validated strategy.

Key ideas

• The screen restricts candidates by turnover and circulating market capitalization.
• It requires the five-, ten-, and twenty-day moving averages to be rising versus the previous day.
• The document provides formula and Python implementations of the selection rule.
• The source notes that the screen omits fundamentals and broader market context and gives no performance validation.

Tags

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