Screening Chinese Stocks by Volatility, Trading Flows, and Revenue Growth

Summary

This stock screen combines three conditions: prior-day price amplitude above 1%, a prior-day appearance on the market’s top-trading list with buying value greater than selling value, and revenue in 2021 more than 1.1 times its 2018 level. The author presents the combination as a way to find active stocks with signs of trading interest and multi-year revenue growth. Example formula and Python snippets outline how to apply the filters and intersect the candidate lists.

The article offers no backtest, return series, or evidence that the screen produces long-term gains. It warns that growth may disappoint and short-term selections are exposed to market swings. It suggests adding profitability, valuation, sector, and industry criteria, but leaves those refinements unspecified. The examples also depend on particular data fields and dates, so implementation requires checking data definitions, reporting periods, and point-in-time availability.

Key ideas

• The screen requires prior-day amplitude above 1% and greater buying than selling value on the trading list.
• It filters for companies whose 2021 revenue exceeds 1.1 times their 2018 revenue.
• The article provides example formulas but no historical performance evidence.
• The author identifies growth disappointment and market volatility as key risks.
• Profitability, valuation, and industry factors are suggested as additional filters.

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