Chinese Stock Screening by Turnover, Reversal Pattern, and Listing Age

Summary

This proposed Chinese equity screen selects stocks with daily turnover between 3% and 12%, a reversal or engulfing-style pattern, and a listing history longer than a chosen number of years. The article illustrates the pattern using daily price ranges and a measure of where the previous close falls within that range, then combines the conditions with listing dates. It provides example formulas and Python logic, but does not report a backtest, selected-stock performance, or evidence that the filters generate returns.

The author says a minimum listing age can exclude newer companies and that the screen may miss industry conditions or trends. Possible extensions include adding technical and fundamental inputs such as dividends and earnings growth, then evaluating the resulting model. The listing-age threshold is left as a variable, and the examples should be treated as demonstrations rather than validated implementations.

Key ideas

• The proposed screen filters for turnover from 3% to 12%, a reversal pattern, and a configurable minimum listing age.
• The example represents the reversal condition through a price-range calculation.
• The article provides implementation examples but no performance evidence.
• A minimum listing age may exclude newer companies, while sector context and financial factors are not fully addressed.

Tags

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