Chinese Stock Screen for Volatility, Institutional Participation, and Weakness

Summary

This screening idea targets main-board Chinese stocks meeting three conditions: a 15-day maximum amplitude above 1, institutional participation above 25% over 15 days, and a declining seven-day moving average. The article presents the combination as a way to find volatile stocks with institutional interest while prices show weakness, potentially creating candidates for further review. It includes formula references and a Python-style example for selecting securities.

The source offers no backtest, return data, or evidence that institutional participation predicts a rebound. It explicitly warns that short-term sentiment can lead to chasing losses and that seven consecutive weak sessions do not imply an imminent recovery. It recommends combining more fundamental and technical measures, considering longer-term value, and controlling risk. The written condition and example code may not precisely match: the described moving-average comparison indicates a declining average, while the prose calls it seven down sessions. The screening logic should therefore be clarified before implementation.

Key ideas

• The screen combines a 15-day amplitude threshold, institutional participation above 25%, and a falling seven-day moving average.
• It restricts candidates to main-board stocks.
• The article treats the conditions as a way to identify research candidates, not as demonstrated buy signals.
• It warns that recent weakness may persist and recommends broader analysis and risk controls.

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