Chinese Stock Screening with Volatility, Opening Gaps, and Earnings Growth

Summary

This A-share screening idea combines daily price and volume conditions with a fundamental growth filter. It selects stocks with an amplitude above 1, current volume above 10,000 lots, an opening price above the prior close, and year-over-year growth in net profit attributable to the parent company above 20% and no more than 100%. The rationale is to pair active trading and a strong open with positive earnings momentum.

The post warns that these filters omit industry and macroeconomic conditions, and that profit growth alone does not establish overall financial or business health. It suggests adding valuation measures and comparing companies within their industries, alongside macro factors. A formula reference is provided, but the accompanying Python example does not visibly implement all stated price and volume filters. No backtest results or performance evidence are supplied, so the screen should be treated as a selection concept rather than a validated strategy.

Key ideas

• The screen combines an amplitude threshold and a current-volume threshold with an opening gap above the prior close.
• It filters for parent-company net profit growth above 20% and up to 100% year over year.
• The rationale pairs short-term trading activity with recent earnings growth.
• Industry comparisons, valuation measures, and macroeconomic conditions are suggested as additional context.
• The post provides no performance evidence, and its Python example appears incomplete relative to the full screen.

Tags

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