Screening Equities by Capital Interest, Positive P/E, and Revenue Growth
Summary
This post describes a Chinese equity screening rule combining a capital-interest measure, positive price-to-earnings ratio, and a revenue comparison. Capital interest is represented by indicators such as turnover rate or volume ratio, with stocks ranked from stronger to weaker. The growth condition compares revenue in 2021 with revenue in 2018 and requires the ratio to exceed 1.1. The article explains these filters as ways to identify stocks attracting trading attention, exclude companies with negative earnings, and favor businesses with revenue growth.
The post offers qualitative reasoning rather than empirical support: it provides no backtest, sample definition, trading period, benchmark, or performance figures. It cautions that capital-interest indicators can mislead, high P/E can signal overvaluation, and rapid growth may not persist. It suggests adding valuation and profitability measures such as price-to-book and ROE, and examining revenue trends over longer periods. Its wording alternates between describing the revenue ratio and calling it a growth rate, so the precise calculation and data handling are not fully specified. The example strategy code is incomplete, limiting reproducibility.
Key ideas
- The screen ranks stocks by capital-interest measures such as turnover or volume ratio.
- It requires a positive price-to-earnings ratio.
- It selects companies whose 2021 revenue divided by 2018 revenue exceeds 1.1.
- The post recommends combining these filters with other valuation and profitability measures.
- It provides no backtest evidence and warns that attention and growth measures may be unreliable or temporary.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.