Chinese Stock Screening with Turnover, Profit Growth, and Volume Ratio

Summary

This document describes a China A-share screening rule that combines turnover, year-over-year net profit growth attributable to parent-company shareholders, and relative trading volume. It selects stocks with turnover between 3% and 12%, profit growth above 20% and up to 100%, and a volume ratio above 1.5 and below 6. The article presents the rule in a screening formula and a Python example, then ranks qualifying stocks by volume ratio.

The rationale is to find stocks with moderate-to-high trading activity, positive earnings growth, and elevated current volume. The document warns that the screen does not account for company financial structure, market-wide risk, or the effects of news and announcements. It suggests adding technical, industry, governance, and ownership factors, but offers no performance testing or evidence that the rule produces profitable trades. The code example uses particular data fields and a fixed reporting period, so its implementation may not match the stated rule exactly or remain suitable across dates.

Key ideas

• The screen combines turnover, parent-attributable net profit growth, and relative volume.
• It uses stated bounds of 3% to 12% turnover, over 20% through 100% profit growth, and a volume ratio from above 1.5 to below 6.
• The article proposes elevated volume as a way to identify stocks with recent market attention.
• It provides screening examples but no backtest or evidence of investment performance.
• The rule omits broader financial, market, news, and governance risks.

Tags

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