Chinese Stock Screen Using Auction Activity and Revenue Growth

Summary

This Chinese stock-screening post combines a measure of trading activity with historical revenue growth. Its activity measure multiplies the prior day’s turnover rate by the current day’s auction volume divided by the prior day’s total volume, and it proposes keeping values between 0.5 and 2. The fundamental filter compares 2021 revenue with 2018 revenue; the body specifies a ratio above 1.1, despite the headline’s less precise threshold. The post presents the revenue comparison as a way to identify companies with growth.

The author says the activity filter may exclude low-activity stocks and that rapid revenue growth can carry risk. It suggests adding valuation, technical, fundamental, industry, and policy considerations. The final strategy description is truncated, and the post provides no backtest, sample definition, or performance evidence. The screen therefore illustrates a combination of auction-related activity and backward-looking growth filters but does not establish that these conditions predict future returns.

Key ideas

• The activity measure combines prior turnover with current auction volume relative to prior volume.
• The post proposes an activity range from 0.5 to 2 to screen for participation without extreme activity.
• The revenue filter compares 2021 with 2018, with the body specifying a ratio above 1.1.
• The author notes that the filters can exclude stocks and that fast revenue growth may involve risk.
• The description is incomplete and offers no evidence from a backtest.

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