Chinese Stock Screen Using Turnover, Profit Growth, and Limit-Up Activity

Summary

This document describes a Chinese equity screening rule combining turnover, year-over-year net profit growth attributable to parent-company shareholders, and recent price-limit activity. It selects stocks with turnover between 3% and 12%, profit growth above 20% and at most 100%, and more than two limit-up days within ten days. The accompanying indicator and Python examples show how these conditions can be expressed and applied to stock data.

The rationale is to pair stronger recent price momentum with profitability growth and a turnover range. The document provides no backtest or performance evidence. It cautions that the screen omits other financial and competitive factors, and that technical signals can be temporary. It suggests adding valuation measures and moving-average comparisons, but does not test those changes. The Python example uses a particular historical reporting period and data-provider fields, so its implementation may require adaptation for current data and market conventions.

Key ideas

• The screen requires turnover between 3% and 12%.\nIt selects year-over-year net profit growth above 20% and no more than 100%.\nIt requires more than two limit-up days during the prior ten days.\nThe document warns that the filters omit important fundamentals and may capture temporary technical moves.\nIt offers no evidence of strategy performance.

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