Chinese Stock Screening with Institutional Flow and a Share-Supply Filter

Summary

This document describes a Chinese stock screen applied after the market opens. It combines amplitude above 1, a change in a measure labeled institutional buying, and a circulating share count no greater than 5.5 billion shares. The rationale offered is that lower share supply may support price appreciation. Indicator references define the flow condition using a change in an institutional volume-difference measure and express the share-count ceiling in shares.

The document supplies no backtest or performance evidence. It warns that the filter may exclude volatile stocks with larger share counts and that manipulation or misleading information can undermine flow and supply signals. It suggests adding valuation or technical measures and adapting filters to market conditions. Its sample Python calculation uses turnover and volume as proxies for institutional activity, which is not shown to establish actual institutional buying; the code is therefore illustrative rather than a demonstrated implementation of the stated signal.

Key ideas

• The screen combines amplitude above 1, a change in a measure labeled institutional buying, and a circulating-share ceiling.
• It is intended to select stocks after the market opens.
• The document suggests that a smaller share supply could support price gains but provides no test evidence.
• The approach may miss large-share-count stocks and can be affected by misleading signals or manipulation.
• The sample code uses turnover and volume proxies without demonstrating that they identify institutional purchases.

Tags

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