Chinese Stock Screen Using Dividend, Convertible Bond, and Amplitude Criteria

Summary

This document describes a Chinese equities screening rule combining price amplitude above 1, a nonempty name for outstanding convertible bonds, and a 2019 dividend ratio above 25%. It presents the screen as a way to find volatile stocks with stronger company characteristics and comparatively high dividends. The discussion says larger amplitude may offer opportunity alongside risk, and warns that neither amplitude nor a high dividend ratio fully captures future performance or long-term profitability.

The article also offers example implementations and suggests supplementing the screen with valuation, yield, and market activity measures. However, the examples do not consistently implement the stated rule: the formula uses turnover and dividend fields, while the Python example uses a daily range and trading amount, and does not clearly check convertible bond status. No backtest results or performance evidence are provided, so the screen should be treated as a selection idea rather than a validated strategy.

Key ideas

• The proposed screen combines price amplitude, outstanding convertible bond information, and a historical dividend ratio.
• Higher amplitude can mean both greater opportunity and greater price risk.
• A high dividend ratio alone does not establish durable earnings or future returns.
• The example formulas use criteria that do not fully match the stated screening logic.
• The article recommends adding fundamental and market activity measures, but provides no performance validation.

Tags

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