Chinese Stock Screening by Trading Range, Market Capitalization, and Profit Growth

Summary

This document outlines a Chinese equity screen combining daily price movement, company size, and earnings growth. It selects stocks with an intraday range of at least 1%, a circulating market value above 10 billion yuan, and year-over-year growth in net profit attributable to parent-company shareholders above 20% and no more than 100%. Formula and Python examples illustrate how to apply the conditions, while the prose frames the screen as a blend of trading activity, scale, and fundamental performance.

The post argues that profit growth may help identify companies with improving prospects, but warns that one earnings metric cannot establish business quality: revenue, costs, other fundamentals, and technical factors are not assessed. It also notes that fundamental analysis cannot predict price declines. The author suggests adapting the screen to market conditions and style, with different emphasis on growth and valuation across bull and bear markets. No backtest, portfolio construction rules, transaction costs, or measured returns are provided, so the screen is a selection recipe rather than evidence of an investable edge.

Key ideas

• The screen requires a daily high-low range of at least 1% and circulating market value above 10 billion yuan.
• It selects companies with parent-attributable net profit growth above 20% and at most 100% year over year.
• The stated rationale combines market activity, company scale, and earnings growth.
• A single profit-growth measure may conceal instability in revenue, costs, or operating quality.
• The document gives no tested performance data and notes that fundamental criteria cannot eliminate price risk.

Tags

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