Screening Chinese Stocks by Turnover, Market Value, and Revenue Growth
Summary
This article outlines an A-share stock screen that combines daily trading activity and company fundamentals. It selects stocks with turnover between 3% and 12%, market capitalization below 10 billion yuan, and no losses, then ranks candidates using revenue growth between 2018 and 2021. The stated rationale is that recent revenue growth can help represent changes in business performance, while turnover and size conditions define the desired trading universe.
The article cautions that historical revenue growth does not predict future results and may not translate into share-price gains. It suggests combining the growth measure with additional technical and fundamental factors. The included formula and sample Python implementation provide possible ways to express the screen, but their details do not align perfectly with the prose: the code uses a particular date and data fields, and the formula averages revenue observations. No backtest, return series, or risk statistics are provided, so the screen is an example of a selection rule rather than evidence of investment performance.
Key ideas
- The screen filters A-shares by turnover, market value, and a positive earnings condition.
- Candidates are ranked using a revenue measure spanning 2018 to 2021.
- The author treats historical revenue growth as informative about past business performance, not as a forecast.
- Additional technical and fundamental criteria are proposed as possible extensions.
- The article provides implementation references but no evidence of backtested or live performance.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.