Chinese Stock Screen Using Turnover, Profit Growth, and Float Size

Summary

This document presents a Chinese equity screening rule that selects stocks with daily turnover between 3% and 12%, parent-company net profit growth between greater than 20% and up to 100%, and tradable shares capped at 5.5 billion. It describes the float-size ceiling as a liquidity and company-size constraint, then provides references for expressing the filters in platform formula syntax and Python using market and financial data fields. The resulting candidates are ranked by turnover in the example.

The article identifies limitations: the screen does not account for company financial structure, valuation, news, or broader market conditions, and the share-count ceiling does not directly account for share price. It suggests adding valuation measures such as price-to-earnings or price-to-book ratios and tuning the float constraint to the investor's needs. No historical returns, benchmark comparison, transaction costs, or out-of-sample evidence are supplied, so the rule should be treated as a screening recipe rather than a validated strategy.

Key ideas

• The screen combines a turnover range, a bounded year-over-year net profit growth rate, and a maximum tradable share count.
• The example ranks qualifying stocks by turnover.
• A share-count ceiling does not directly measure valuation because it ignores stock price.
• The author notes exposure to market conditions, news, and financial-structure risks.
• Valuation filters and adjustments to the float constraint are suggested, but no performance test is presented.

Tags

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