Chinese Stock Screening with Three-Day Limit-Up Momentum and Earnings Growth

Summary

This stock-screening proposal combines price activity with reported earnings growth. It selects shares whose amplitude exceeds the stated threshold, that had a three-day limit-up streak as of the prior day, and whose year-over-year growth in net profit attributable to parent-company shareholders is above 20% and no more than 100%. The rationale is that large price movement and a recent winning streak indicate market activity, while profit growth adds a fundamental filter.

The document notes that this screen does not account for debt, cash flow, or other dimensions of financial health, and that profit growth alone may not represent overall profitability. It suggests adding further financial, technical, and market measures and validating the rules through backtesting. It provides example formula logic and code references, but no tested performance, comparison benchmark, or implementation details sufficient to assess data timing, execution, or survivorship effects. The proposed conditions are therefore a screening hypothesis rather than evidence of a profitable strategy.

Key ideas

• The screen combines a price-amplitude threshold and a recent three-day limit-up streak with earnings growth.
• Eligible companies must have parent-attributable net profit growth above 20% and at or below 100% year over year.
• The rationale treats recent price strength as a market-activity signal and earnings growth as a fundamental filter.
• The author notes that profit growth alone omits debt, cash flow, and broader financial conditions.
• Backtesting and additional measures are suggested, but the document provides no strategy performance evidence.

Tags

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