Chinese Stock Screening with Convertible Bonds and Three Down Days

Summary

This post describes a Chinese equity screen that combines daily price declines with the presence of an outstanding convertible bond. Its stated logic also includes an amplitude threshold, while the accompanying indicator formula focuses on the convertible bond name and a price decline across three consecutive sessions. A Python example sketches how to query listed stocks, bond data, and recent daily prices.

The post frames the consecutive declines as a possible pullback opportunity and the bond condition as a clue about corporate financing and credit. It warns that the screen omits fundamental checks and that three down sessions do not ensure a rebound; prices may keep falling. It recommends adding financial, valuation, and sector information and using rolling selection. No backtest results or evidence of profitability are supplied, and the examples do not consistently implement every stated condition.

Key ideas

• The screen selects stocks with a convertible bond and three consecutive declining sessions.
• The post also states an amplitude condition, though its formula and example do not consistently apply it.
• Three down days may precede a rebound, but they can also occur during a continuing decline.
• The author recommends supplementing the screen with fundamentals, valuation, and industry data.
• No performance evidence is presented.

Tags

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