Chinese Stock Screening by Volatility, Market Value, and Profitability

Summary

This stock-screening note proposes selecting Chinese equities using trading range, circulating market value, and positive trailing net profit. Its stated formula uses market-value bounds, positive net income over the trailing twelve months, and the prior day’s high-to-low ratio. The accompanying Python example describes a related workflow using market data and financial indicators, though its implementation does not consistently match the stated conditions.

The rationale is to combine company scale and profitability with elevated price movement. The article warns that stocks of different sizes can behave differently, that profitability may be unstable, and that omitting historical price trends limits forecasts. It suggests adding financial, industry, and technical measures, such as moving averages, and weighing criteria together. No backtest or measured performance evidence is presented. The screening thresholds and sample code should therefore be treated as a starting point, with the discrepancy between the written rule and code checked before research or deployment.

Key ideas

• The screen combines circulating market value bounds with positive trailing net profit.
• It also requires a prior-day high-to-low price ratio above a threshold.
• The proposal aims to identify profitable companies whose shares show elevated price movement.
• The article notes that market behavior varies across company sizes and profitability can be unstable.
• Its example code does not fully align with the stated screening rule, and no performance evidence is supplied.

Tags

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