Screening Chinese Stocks by Volatility, Limit-Up History, and Earnings Growth

Summary

This Chinese equity screening idea combines a daily price range filter, a history of limit-up moves, and year-over-year earnings-per-share growth. It seeks stocks with an amplitude above one percent, at least two qualifying limit-up events within the previous 500 days, and EPS growth above 20% and no higher than 100%. The article also mentions sorting by earnings growth. A sample implementation adds profitability and EPS comparisons across reporting periods, so its coded conditions do not exactly match the stated screen.

The rationale is to pair evidence of substantial price movement and past sharp advances with a measure of improving earnings. The document offers no backtest, portfolio results, or evidence that these conditions identify stable or superior investments. It acknowledges that hard thresholds can exclude companies with longer-term potential and recommends considering valuation and dividend measures, adjusting criteria to market conditions, and controlling risk. The example’s data fields and definitions would need checking, especially the treatment of limit-up events and the difference between its stated amplitude rule and its code’s average-range calculation.

Key ideas

• The screen combines price amplitude, historical limit-up frequency, and earnings growth.
• Its stated EPS growth range is above 20% and at most 100%.
• The sample implementation adds profitability and EPS comparison checks that are absent from the headline criteria.
• The article provides no performance evidence for the screen.
• Fixed thresholds can exclude some candidates and should be assessed alongside valuation and risk measures.

Tags

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