Chinese Stock Screening by Turnover, Profit Growth, and Auction Amount

Summary

This screening rule selects Chinese stocks with turnover between 3% and 12% and year-over-year growth in net profit attributable to the parent company above 20% and up to 100%. It then ranks qualifying stocks by the day’s auction amount and chooses the first five, emphasizing trading activity alongside liquidity and reported earnings growth.

The post includes indicator syntax and a Python example, but it provides no backtest, return data, or evidence that the ranking predicts subsequent performance. Its stated concern is that the strategy relies too heavily on a single day’s auction amount and may overlook broader market conditions. It suggests combining the filter with other fundamental and technical measures and considering longer-term company performance. The code examples use specific data fields and reporting inputs, so those should be checked against the data source before implementation.

Key ideas

• The screen requires turnover between 3% and 12%.
• It filters for parent-company net profit growth above 20% and at most 100%.
• It ranks qualifying stocks by auction amount and selects five.
• The post gives example code but reports no strategy performance.
• Auction amount may be an incomplete basis for stock selection.

Tags

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