Chinese Stock Screen Using Price Range, Turnover, and Float Size

Summary

This Chinese stock-selection example combines three filters: daily price amplitude above a threshold, prior-day actual turnover within a stated band, and circulating share capital capped at a stated size. The accompanying rationale is that smaller floats may have greater activity and price movement, while a turnover band is intended to exclude stocks with too little or too much trading. Formula and Python examples show how the author intends to calculate the conditions and intersect them into a screening result.

The article cautions that smaller-float companies can experience sharp price fluctuations and that the screen omits fundamental quality. It recommends adding financial or valuation criteria as a possible refinement. The code is illustrative and depends on the data provider’s field definitions and units; in particular, the written turnover description and sample volume-ratio calculation may not represent actual turnover consistently. No backtest, out-of-sample evaluation, or return evidence is provided, so the criteria should be treated as a screening recipe rather than a validated strategy.

Key ideas

• The screen combines a price-amplitude threshold, a prior-day turnover range, and a maximum circulating float.
• The author presents the conditions as a way to focus on active, smaller-float shares.
• The article notes that small-float stocks may be more volatile and that fundamentals are omitted.
• The sample calculations require careful checking of data fields and units, especially for turnover.
• No performance testing or evidence of predictive value is reported.

Tags

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