Screening Chinese Stocks by Volatility, Order Flow, and Earnings Growth

Summary

This note describes a Chinese equity screen combining daily price range, large-order net buying, and year-over-year net profit growth attributable to shareholders of the parent. Its stated final rule requires amplitude above 1, a high large-order net volume rank, and profit growth above 20% but no more than 100%; the article frames the combination as a way to find liquid companies with earnings growth for medium- to long-term investors.

The discussion says the screen mixes a technical activity measure, liquidity, and one fundamental measure, but warns that a single profit metric cannot capture a company’s full financial condition. It suggests adding return on investment, ROE, valuation, and industry growth, alongside closer review of company statements. No performance evidence or backtest results are provided. The examples include implementation references, but their fields and conditions are not fully consistent with the written rule, so the selection logic requires careful validation before use.

Key ideas

• The screen combines price amplitude, large-order net volume ranking, and parent-company net profit growth.
• The written earnings criterion is growth above 20% and at most 100%.
• The article presents the screen as a blend of market activity and a basic company growth filter.
• A single earnings growth measure can miss leverage, returns, dividends, and other financial risks.
• The document provides no performance results, and its sample implementations should be checked against the stated rules.

Tags

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