Screening Profitable Small-Cap Stocks by Range and Excluding Beijing Shares
Summary
This post outlines a Chinese equity screening rule combining a daily high–low range above one percent, market capitalization below 10 billion yuan, positive earnings, and exclusion of Beijing-listed shares. The expanded rule specifies positive net profit in each of the most recent four quarters. It frames the screen as a mix of volatility, size, and profitability filters, and provides a sample formula intended for a stock-screening platform.
The article offers no backtest, selection counts, return data, or method for trading the resulting candidates. It notes that the screen may overlook liquidity and sector conditions, and that excluding a market segment limits the available universe. It suggests considering broader market factors and building a more complete quantitative framework. The long sample exclusion list is difficult to audit from the text, and the document does not define how signals would be acted on or risks managed.
Key ideas
- The screen selects stocks with a daily range above one percent and market capitalization below 10 billion yuan.
- It filters for positive earnings, with the detailed version requiring positive net profit in each of the last four quarters.
- Beijing-listed shares are excluded, reducing the investable universe.
- The post supplies screening logic but no test results or trading rules.
- Liquidity and sector behavior are identified as omitted considerations.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.