Chinese Stock Screen Using Turnover, Profit Growth, and a Rising 30-Day Average
Summary
This document describes a Chinese equity screening rule that combines turnover, parent-company net profit growth, and a rising 30-day moving average. It selects stocks with turnover between 3% and 12%, year-over-year profit growth above 20% and at or below 100%, and a 30-day average moving upward. The article presents the rule as a way to combine basic financial growth with a short- to medium-term price trend. It also includes sample indicator and Python code, though the Python example uses particular historical profit data and simplified price checks that do not fully match the stated moving-average condition.
The document warns that the screen is simple and may miss relevant company or industry context. A single moving average can overlook other technical signals, and market volatility may affect its selections. It suggests adding indicators such as KDJ or MACD, broader company and industry measures, and volatility adjustments. No backtest results or performance evidence are provided, so the strategy's investment potential remains unvalidated in the document.
Key ideas
- The screen requires turnover between 3% and 12%.\nIt filters for year-over-year parent-company profit growth above 20% and no greater than 100%.\nA rising 30-day moving average is used as the trend condition.\nThe article identifies limited company context and reliance on one technical indicator as weaknesses.\nIt provides example screening code but reports no performance testing.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.