Chinese Stock Screen Using Turnover, Float Size, and Positive P/E

Summary

This stock screening post selects companies with daily turnover between 3% and 12%, circulating share float at or below 5.5 billion shares, and a positive price-to-earnings ratio. The stated rationale is to find actively traded stocks with a relatively limited float and positive earnings, combining a trading-activity condition with a basic valuation and company-size filter. Formula and Python examples are included to express the screen.

The post cautions that positive P/E alone does not establish attractive valuation and that a fundamentals-heavy screen can miss short-term price behavior or other influences. It recommends considering measures such as price-to-book and return on equity, along with a longer-term price context. It provides no backtest, candidate analysis, benchmark, or risk and cost estimates, so the claimed potential is not supported by empirical results. The examples also vary in boundary conventions for turnover, which should be resolved before implementation.

Key ideas

• The screen applies a 3%–12% daily turnover range and a circulating float ceiling of 5.5 billion shares.
• It requires a positive P/E ratio as a basic profitability and valuation filter.
• The post frames turnover, float size, and earnings multiples as complementary screening dimensions.
• Positive P/E does not show whether a stock is cheap relative to its own or sector valuation.
• The post reports no empirical performance evidence, and example turnover boundaries are inconsistent.

Tags

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