Screening Chinese A-Shares by Daily Range, Code, and Positive P/E

Summary

This stock screen selects shares whose codes begin with 60, whose daily high-to-low range exceeds one percent of the prior close, and whose trailing price-to-earnings ratio is positive. The article presents the conditions as a way to find relatively active stocks while excluding companies with negative P/E readings, and gives example formula and Python implementations.

The document offers no backtest, returns, or evidence that the screen predicts performance. It cautions that P/E can be misleading across companies and industries, and that relying on range and valuation alone may miss relevant fundamentals or other candidates. It suggests adding measures such as price-to-book or return on equity and considering industry context. The screen is a basic selection rule rather than a complete trading strategy; it does not specify entry, exit, or portfolio risk rules.

Key ideas

• The screen requires a daily high-to-low range greater than one percent of the prior close.
• It restricts candidates to stocks whose codes start with 60 and whose P/E is positive.
• The article treats range as a proxy for activity and positive P/E as a rough indicator of profitability.
• It warns that the filters omit broader fundamentals and may misrepresent companies across industries.
• It suggests adding financial and industry measures, but provides no performance validation.

Tags

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