Chinese Stock Screening with Amplitude, Main-Force Control, and ROE

Summary

This note describes a Chinese equity screen that combines amplitude above 1, a prior-day proxy for main-investor control, and return on equity above 15% in each of five consecutive years. The proposed logic aims to pair active price movement and recent buying interest with a record of sustained profitability. The article gives a formula reference and sample Python workflow, including a positive price-to-moving-average condition as a proxy for control and a profitability filter.

The post provides no backtest, performance statistics, or evidence that these conditions identify future winners. Its formula and code do not clearly establish how five years of ROE are checked, and the amplitude and ROE thresholds appear in different scales across the examples. It flags valuation, deteriorating results, industry changes, and short-term price action as risks. It suggests adding valuation, size, and other financial measures, so the screen should be treated as an initial filter rather than a validated strategy.

Key ideas

• The screen combines amplitude, a prior-day price-to-moving-average proxy, and sustained ROE above 15% for five years.
• The article gives formula and Python examples but no return or backtest evidence.
• The examples leave ambiguity about verifying five years of ROE and translating thresholds into code.
• Valuation, business deterioration, industry shifts, and short-term market moves are cited as risks.

Tags

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