Chinese Stock Screening by Revenue Growth, Trading Volume, and Momentum

Summary

This document outlines a Chinese equity screen combining three filters: rank stocks by trading volume and select the top 100, require a positive 10-day price gain below 35%, and require 2021 revenue divided by 2018 revenue to exceed 1.1. The stated rationale is to find actively traded stocks with recent upward movement and historical revenue growth. The author suggests that limiting the price gain may avoid selecting stocks whose short-term rise has become excessive.

The page provides qualitative reasoning and possible refinements, such as using volume measures across multiple periods, adding technical indicators, and including other financial measures. It gives no backtest results, performance figures, precise volume lookback period, or evidence that the filters predict returns. The revenue comparison is backward-looking, and the page itself notes that future growth is uncertain and that short-term gains can reverse. Treat the screen as a basic selection idea requiring independent testing, rather than as evidence of a profitable strategy.

Key ideas

• The screen ranks stocks by trading volume and retains the 100 most active names.
• It requires a positive 10-day return below 35 percent.
• It selects stocks whose 2021 revenue is more than 1.1 times their 2018 revenue.
• The page proposes broader volume periods and additional technical and financial measures as possible refinements.
• The document gives no backtest evidence, and it notes that past revenue growth and recent price gains do not ensure future performance.

Tags

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