Screening Chinese Stocks by Turnover, Profit Growth, and Rising Lows

Summary

This stock screen combines a turnover rate between 3% and 12%, year-over-year growth in net profit attributable to parent-company shareholders above 20% and no more than 100%, and a price pattern described as a rising bottom. The accompanying indicator logic identifies a low below several recent lows and adjusted reference levels. The article also gives example implementations in charting and Python environments.

The author presents rising lows as a possible reversal signal and suggests adding trend measures such as trend lines or smoothed moving averages. The document supplies screening rules and code examples, but no backtest or evidence that the screen earns returns. It cautions that interpreting a rising bottom can be subjective and that relying on price movement alone may encourage chasing gains. The stated profitability range and pattern definition should be treated as screening choices, not validated predictors.

Key ideas

• The screen requires turnover between 3% and 12% and year-over-year parent-attributable profit growth above 20% through 100%.
• It adds a rising-bottom price condition based on recent lows and reference levels.
• The article provides example logic for charting software and a Python data workflow.
• The author describes rising lows as a possible reversal signal but gives no performance evidence.
• The pattern can be subjective, and the article recommends considering additional trend measures.

Tags

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