Screening Chinese Stocks by Price Range, Float Size, and Profit Growth

Summary

This document describes a Chinese equity screen that combines three conditions: price amplitude above 1%, a circulating share count no greater than 5.5 billion, and year-over-year growth in parent-attributable net profit above 20% and no more than 100%. It explains the intended rationale: favor stocks with notable price movement, smaller floats, and positive earnings growth. It also sketches how to calculate the conditions and intersect the resulting candidate sets.

The article cautions that profit growth alone can miss other fundamentals and can fluctuate, and suggests checking measures such as revenue growth and gross margin over a longer period. It provides no backtest, performance figures, or evidence that the screen is profitable. The implementation examples use prior-period profit data, but do not discuss reporting delays, point-in-time availability, negative or zero comparison-period earnings, or how amplitude and share-count thresholds were selected. The rules should therefore be treated as a screening idea requiring validation, rather than a tested trading strategy.

Key ideas

• The screen selects stocks with price amplitude above 1%.
• It caps circulating shares at 5.5 billion.
• It requires parent-attributable net profit growth to be above 20% and at most 100%.
• The article recommends combining earnings growth with other fundamental measures.
• No performance test is supplied, and the thresholds are not justified with evidence.

Tags

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