Chinese Stock Screening with Turnover and Profit Growth Filters

Summary

This Chinese equity screen combines current turnover, year-over-year net profit growth attributable to parent-company shareholders, and the previous day’s turnover. It selects stocks with turnover from 3% through 12%, profit growth above 20% and no more than 100%, and prior-day turnover above 8%. The article frames the prior-day activity filter as a way to focus on stocks with short-term market interest while retaining a profitability-growth condition.

The article includes example formulas and Python-style implementation guidance, but reports no backtest, selected-stock results, or performance measures. It cautions that the approach may overemphasize short-term activity and that financial filters can suit industries differently. It suggests considering additional valuation, dividend, trading-status, or technical measures, with choices tied to the investor’s horizon and risk tolerance. The code examples and prose should be checked carefully before use, since the shown calculations may not consistently implement the stated prior-day turnover condition.

Key ideas

• The screen requires turnover between 3% and 12% and year-over-year parent-company net profit growth above 20% through 100%.
• It adds a prior-day turnover threshold above 8% to identify recent trading activity.
• The article presents formula and Python examples but provides no backtest results.
• The author warns that short-term activity filters and financial conditions may not suit every industry.
• Additional valuation, dividend, and technical filters are proposed as possible refinements.

Tags

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