Chinese Stock Screen Using Valuation and 2019 Dividend Ratios
Summary
This document outlines a stock selection screen for companies listed on China’s Shenzhen Main Board. It filters for price-to-earnings ratios from 0 to 29.01, price-to-book ratios from 0 to 3.11, and a dividend payout ratio above 25% in 2019, then ranks qualifying stocks by capital strength. The post also suggests adding measures of financial health, profitability, and industry conditions to refine the screen.
The document provides a rule description and a skeletal Python example, but no backtest, performance results, or detailed definitions for the ranking measure. Its discussion notes that the screen uses only a limited set of factors and excludes stocks from other market segments. The historical dividend condition may not indicate current payout behavior, and the suggested additional criteria are not operationalized. Readers would need to define data timing, handle missing or stale fundamentals, and test the selection rules before drawing conclusions about performance.
Key ideas
- The screen focuses on Shenzhen Main Board stocks with specified valuation ranges and a 2019 dividend payout ratio above 25%.\nQualifying stocks are ordered by capital strength, though the document does not define that measure.\nThe author identifies limited factor coverage and market-segment coverage as constraints.\nThe proposed additions—financial health, profitability, and industry context—are suggestions rather than implemented rules.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.