Screening Chinese A-Shares by Turnover, Size, and Profitability

Summary

The document describes a stock screen for companies whose codes begin with 60, with turnover between 3% and 12%, market capitalization below 10 billion yuan, and no losses in each of the prior three years. It frames these filters as a way to combine liquidity, smaller company size, and a record of profitability. The accompanying example outlines retrieving listed-stock and financial data, checking the filters, and ranking candidates by counts of daily gains above a threshold.

The post offers no backtest, performance figures, or validation of the strategy’s claimed investment potential. It cautions that profitability alone leaves out competitive strength, industry changes, regulation, and broader economic conditions. It suggests adding earnings growth or return on assets and considering industry and macroeconomic trends. The example uses specific historical dates and data fields, so it does not establish that the screen remains suitable or that its implementation accurately captures every stated condition.

Key ideas

• The screen selects 60-prefixed stocks with turnover between 3% and 12%, market value below 10 billion yuan, and three consecutive profitable years.
• The filters aim to combine trading activity, smaller capitalization, and positive earnings history.
• The example ranks qualifying stocks by the number of observed daily gains exceeding a threshold.
• The document reports no evidence of returns and warns that the screen omits competitive, industry, regulatory, and macroeconomic factors.
• It proposes adding earnings growth or return on assets to assess profitability more fully.

Tags

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