Screening Chinese Stocks for Volatility, Recent Gains, and Profit Growth

Summary

The document describes a Chinese equity screen combining three conditions: daily high-low amplitude above one, at least one daily gain of 10% or more in the prior 25 trading days, and parent-company net profit growth above 20% and no more than 100%. It presents volatility and recent sharp gains as signs of price activity, while profit growth adds a fundamental filter. It also outlines example indicator logic, though some proposed components are placeholders rather than specified calculations.

The author flags dependence on recent price behavior, elevated volatility, and the possibility of unreliable financial statements. Suggested refinements include considering long-term prospects, valuation, industry and market conditions, and comparing multiple financial measures. The document offers no backtest results or performance evidence. Its proposed additions are not operationalized, so the screen is a starting point for research rather than a complete, validated strategy.

Key ideas

• The screen combines price amplitude, a recent large daily gain, and parent-company profit growth.
• A recent gain threshold is applied over a 25-trading-day lookback.
• The stated profit-growth band is above 20% and at most 100%.
• The screen may favor short-term price moves and volatile stocks.
• The document recommends adding valuation, longer-term, market, industry, and financial-quality checks.

Tags

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