Chinese Stock Screen Using Turnover, Float Value, and Recent Limit-Ups

Summary

This document describes a Chinese equity screening rule that combines trading activity, circulating market value, and recent price strength. Its stated final criteria are turnover no higher than 12%, circulating market value between 1 and 55 hundred million yuan, and at least one limit-up event during the prior month. The article presents the screen as a way to find active, relatively small-cap stocks that have recently shown strong price action.

The evidence is a rule description and sample formula, not a backtest or performance study. The article warns that the screen omits company fundamentals and longer-term prospects, and that a short-term signal can encourage risky chasing. It suggests adding technical and fundamental measures and time-series analysis. There is an inconsistency in the examples: the introductory rule gives a 3% lower turnover bound, while the final rule omits it, and the Python price comparison does not clearly implement the stated recent limit-up condition. These details should be resolved before treating the examples as an executable specification.

Key ideas

• The screen combines turnover, circulating market value, and a recent limit-up event.
• The final stated rule uses a turnover ceiling and a bounded market value range.
• The article offers no measured backtest results for the selection rule.
• It cautions that omitting fundamentals and focusing on short-term moves increases risk.
• The written rule and example implementation contain discrepancies that need clarification.

Tags

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