Screening Chinese Stocks by Turnover and Profit Growth

Summary

The document describes a Chinese stock screen using turnover between 3% and 12%, year-over-year net profit growth attributable to parent-company shareholders between 20% and 100%, and a stock-code prefix condition. It provides example implementations for a stock-screening platform and Python, where the resulting candidates are sorted by turnover. The central idea is to combine a market-activity measure with a fundamental growth measure.

The document gives no backtest, performance figures, or evidence that the conditions predict returns. Its descriptions also conflict on the stock-code rule: the stated final logic selects codes beginning with 60, while the analysis says it filters those stocks out and the Python example skips them. The code examples use specific data fields and a historical reporting period, so they may need correction and updating before use. The author notes that profit forecasts can be inaccurate and that a narrow screen may miss higher-risk growth stocks; adding valuation, capital-flow, or industry-specific measures is suggested.

Key ideas

• The screen combines a turnover band with a bounded year-over-year net profit growth rate.
• The written final condition requires a stock code beginning with 60, but other parts of the document contradict this.
• The examples show how to express the screen in a platform formula and a Python data workflow.
• The document supplies no performance testing to establish whether the filter produces an investment advantage.
• Profit forecasts and a narrow set of criteria can produce misleading or incomplete selections.

Tags

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