Chinese Stock Screening with Price Activity and Earnings Growth Filters

Summary

This post proposes a Chinese equity screening rule that combines daily price activity, the stock’s indicated gain at 9:25, and year-over-year net profit growth attributable to shareholders of the parent company. It selects stocks with an amplitude above 1, an indicated gain below 6%, and earnings growth above 20% and no more than 100%. The accompanying discussion frames the mix as a way to find growing companies while avoiding stocks with excessive early price gains.

The article includes example formula and Python approaches for obtaining market and income statement data, but it does not present a backtest, portfolio returns, or supporting empirical evidence. It acknowledges that the screen omits important fundamentals such as debt and cash flow, and does not cap valuation, so it can select expensive or financially weaker firms. Its code and stated rule also merit careful review: the formula’s price comparison and the Python amplitude condition may not implement the described thresholds as intended. The post suggests adding further indicators and risk controls, but gives no tested optimization procedure.

Key ideas

• The screen combines price amplitude, the 9:25 indicated gain, and year-over-year parent-company net profit growth.
• Its stated thresholds require profit growth above 20% and at or below 100%, with the indicated gain below 6%.
• The examples use stock market and financial statement data to construct a candidate list.
• The article provides no performance test, and its sample code may not match the stated screening rule.
• The author notes that valuation, debt, cash flow, and risk controls are missing.

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