Screening Chinese Stocks by Turnover, Ten-Day Gain, and Trade-Volume Imbalance

Summary

This stock screen combines turnover, recent price change, and the ratio of externally classified to internally classified trading volume. Its stated criteria are turnover from 3% to 12%, a positive ten-day gain below 35%, and an outside-to-inside volume ratio above 1.3. The article says to prioritize main-board stocks and proposes adding financially healthy companies with stable results and industry advantages.

The accompanying discussion interprets turnover as an activity filter and the volume ratio as a measure of buying and selling pressure. It warns that the screen omits fundamentals and industry context, and that the volume ratio may be distorted by individual trading or broader market conditions. The page includes formula and Python examples, but the Python volume condition appears malformed and does not correctly implement the stated ratio; no backtest or returns evidence is provided. The criteria are therefore a screening idea, not validated investment guidance.

Key ideas

• The proposed screen combines a turnover band, a positive but capped ten-day gain, and an outside-to-inside volume ratio above 1.3.
• The article recommends considering financial health, earnings stability, and industry position alongside the technical filters.
• It cautions that trade-volume imbalance can be affected by individual participants and market conditions.
• The supplied Python example does not correctly calculate the stated volume ratio.
• No backtest results or evidence of the screen's effectiveness are presented.

Tags

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