Chinese Stock Screen Using Turnover, Profit Growth, and Auction Returns

Summary

This Chinese equity screening strategy combines three conditions: turnover between 3% and 12%, year-over-year growth in net profit attributable to parent-company shareholders above 20% and no more than 100%, and an auction-period price change greater than -2% but below 5%. The article presents the conditions as a way to filter stocks using both company earnings growth and short-term trading activity. It includes sample indicator logic and Python code intended to retrieve stock and financial data.

The article characterizes the approach as potentially short-term and warns that auction-price thresholds may be subjective and can lead to poor selections. It recommends further fundamental and technical analysis, and suggests evaluating indicators through data analysis and backtesting. However, it supplies no backtest results or evidence that the screen improves selection accuracy. The code also specifies a particular profit-data period and data provider, so it may not faithfully represent a current, point-in-time screen without adjustment.

Key ideas

• The screen filters stocks by turnover, annual profit growth, and auction-period price change.
• Profit growth must be above 20% and at most 100% under the stated rule.
• The article provides example indicator logic and a Python data-retrieval workflow.
• The author cautions that the screen may be short-term and that auction thresholds are subjective.
• No backtest results are presented to establish the screen’s effectiveness.

Tags

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