Chinese Stock Screen Using Turnover, Profit Growth, and Weekly MA Crossovers

Summary

This Chinese equity selection rule screens for stocks with turnover between 3% and 12%, year-over-year growth in net profit attributable to parent-company shareholders above 20% and up to 100%, and a weekly five-period moving average crossing above the ten-period average. It excludes ChiNext stocks and selects five names, with the accompanying formula sorting by market capitalization. The article includes example implementations for a stock screening platform and Python.

The weekly crossover is presented as a way to reduce trading frequency while combining a technical trend condition with turnover and reported earnings growth. The article cautions that technical signals can overshadow company fundamentals, industry conditions, and short-term market risk, and suggests broadening fundamental and technical checks. It provides no historical backtest, benchmark, or evidence of returns. The code examples also differ in important ways: the Python version checks whether weekly averages stand above one another rather than confirming a crossover, and uses a specific historical reporting period, so the examples should not be treated as identical implementations.

Key ideas

• The screen combines a turnover band with a specified range of year-over-year parent-company profit growth.
• It requires a weekly five-period moving average to cross above the ten-period average.
• The stated selection takes five stocks and excludes ChiNext listings.
• The article flags gaps in fundamental and market-risk analysis and provides no performance validation.
• The Python example checks moving-average ordering rather than the crossover described in the rule.

Tags

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