Chinese Stock Screen Using Turnover, Ten-Day Returns, and Profit Growth

Summary

The document describes a Chinese equity screening rule combining three filters: turnover between 3% and 12%, a positive ten-day return below 35%, and year-over-year growth in net profit attributable to parent-company shareholders above 20% and at most 100%. The stated rationale is to pair recent price activity with a basic profitability-growth measure, then consider company fundamentals and industry prospects when assessing candidates.

The article cautions that these simple thresholds do not provide a complex or reliable predictive model and that monitoring and adjustment remain necessary. It offers formula and Python examples, but the Python example does not faithfully implement the stated screen: it uses a different price condition and return-on-equity data in place of the described turnover, return, and profit-growth filters. No backtest results or performance evidence are provided, so the rule should be treated as a screening idea rather than a validated strategy.

Key ideas

• The screen requires turnover between 3% and 12% and a positive ten-day return below 35%.
• It also requires year-over-year parent-company net profit growth above 20% and no more than 100%.
• The article recommends considering fundamentals and industry outlook alongside the numerical filters.
• The Python example uses different conditions from the stated screen, and the article provides no performance validation.

Tags

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