Chinese Stock Screening with Amplitude, Recent Limit-Ups, and Earnings Growth

Summary

This document describes a Chinese equity screening rule that combines daily price movement, recent limit-up behavior, and earnings growth. Stocks qualify when their amplitude exceeds 1%, they had at least one limit-up day in the prior 25 days, and year-over-year net profit growth attributable to parent-company shareholders falls between 20% and 100%. The article also gives example indicator and Python implementations, though their lookback details do not fully match the stated 25-day rule.

The rationale is that larger amplitude may indicate room for price gains, a recent limit-up may signal strength, and moderate-to-high profit growth may point to improving businesses. These are proposed explanations rather than demonstrated findings: the document supplies no performance results or backtest. It flags earnings deterioration and weak market conditions as risks, and suggests adding valuation measures or macroeconomic context. The screen is a candidate-selection method, not a complete trading system, and it does not specify entry timing, exits, or position sizing.

Key ideas

• The screen combines amplitude above 1%, a recent limit-up day, and net profit growth between 20% and 100%.
• The article interprets amplitude and limit-up activity as possible signs of price strength, without providing performance evidence.
• It identifies falling earnings and unfavorable market conditions as risks to the selection rule.
• Valuation and macroeconomic measures are suggested as possible additions, while trade management rules are not specified.

Tags

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