Chinese Stock Screening with Turnover, KDJ, and Earnings Growth

Summary

This document describes a Chinese equity screen combining turnover, a rising KDJ K value, and year-over-year growth in net profit attributable to parent-company shareholders. It selects stocks with turnover between 3% and 12%, positive KDJ K growth, and profit growth above 20% and at most 100%. It provides an example formula and Python implementation, though their turnover and earnings calculations may not map exactly to the stated criteria.

The rationale is to pair moderate trading activity and improving short-term technical momentum with strong reported earnings growth. The document gives no backtest, performance figures, or evidence that the combination predicts returns. It also cautions that valuation, company risks, market sentiment, and the persistence of earnings growth are not addressed. Suggested additions include valuation measures and broader market or capital-flow signals, so the screen is best treated as a starting point for further analysis.

Key ideas

• The screen requires turnover between 3% and 12%.
• It selects stocks whose KDJ K value is rising.
• Year-over-year net profit growth must exceed 20% and be no greater than 100%.
• The examples provide formula and Python approaches but do not establish predictive performance.
• Valuation, market conditions, and the durability of earnings growth remain unassessed.

Tags

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