Filtering Chinese Stocks by Price Amplitude, Listing Age, and Positive P/E

Summary

This stock screen selects shares with a daily price change above 1%, more than one year since listing, and a positive price-to-earnings ratio. Its rationale is that larger daily moves may indicate active trading, while a longer listing history may exclude newer, less established companies. The positive P/E condition is presented as a valuation filter, though a positive ratio alone does not establish that a stock is cheap.

The document provides a brief indicator formula and a sample data workflow for screening candidates. It warns that a few mechanical criteria cannot represent a company’s fundamentals or full value, may exclude some large-cap stocks, and can encourage chasing price moves. It proposes combining valuation measures such as price-to-book and dividend yield with technical indicators. No backtest or performance evidence is reported, and the sample implementation’s listed-age condition is not clearly applied in its code.

Key ideas

• The screen requires daily price amplitude above 1%, a listing age greater than one year, and positive P/E.
• The rationale treats larger daily moves as a sign of activity and listing history as a rough stability filter.
• A positive P/E does not by itself show that a stock is undervalued.
• The document cautions that mechanical indicators omit broader company and market information.
• It suggests adding valuation and technical measures, but reports no performance testing.

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