Screening Chinese Stocks by Market Value, Profitability, and Price Range

Summary

This Chinese equity screening rule combines a circulating market value band, positive trailing twelve-month net profit, and a recent high-to-low price ratio above a threshold. The stated intent is to find companies with established scale and positive earnings while retaining some price movement. The document provides both a platform formula and a Python illustration of the screen.

The accompanying discussion identifies limitations: market capitalization does not make stocks behave uniformly, earnings can be unstable, and the filter does not account for historical price trends. It suggests adding financial, industry, and technical measures, but reports no backtest or evidence that the selected conditions predict returns. The code example also uses separate data fields and calculations, so users would need to check that its implementation matches the stated screening rule before relying on results.

Key ideas

• The screen combines a circulating market value range with positive trailing net profit.
• It adds a recent high-to-low price ratio condition to select for price movement.
• The document warns that market size and profitability alone do not capture price history or risk.
• No backtest or measured performance is provided.

Tags

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