Screening Chinese Stocks by Turnover, Profit Growth, and Reversal Pattern

Summary

This Chinese A-share screening idea combines a turnover band of 3% to 12% with year-over-year growth in net profit attributable to the parent company above 20% and no more than 100%. It adds a “reversal” condition, described as stocks that have seen continued inflows over a recent period without substantial outflows. The article presents the criteria as a stricter extension of an earlier screen.

The article includes sample formula and Python references, but the Python implementation does not clearly test the stated reversal pattern: it checks a list of large-trade data for negative values. It also uses a fixed historical reporting period and appears to treat a volume field as turnover, so the example may not reproduce the stated logic reliably. No backtest or performance evidence is given. The authors caution that the approach is subjective and backward-looking, and suggest adding industry, company, and market assessments. The screen is therefore best understood as a proposed selection rule, not a validated strategy.

Key ideas

• The screen selects Chinese stocks with turnover between 3% and 12%.
• It requires year-over-year parent-company net profit growth above 20% and at or below 100%.
• A recent inflow pattern without large outflows is intended as an additional reversal filter.
• The article provides no performance test, and its code example may not fully implement the stated criteria.

Tags

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