Screening Profitable Small-Cap Stocks by Turnover and Float Value

Summary

This Chinese-equity screening rule selects companies with turnover between 3% and 12%, circulating market value between 5 billion and 10 billion yuan, total market value below 10 billion yuan, and positive reported profits. Turnover is used as a market-activity filter, while the size and profitability conditions narrow the candidate universe. The article provides formula and Python examples, but it does not report a backtest, return profile, or comparison with other screens.

The author cautions that profitability alone does not establish long-term business strength and that industry competition, economic cycles, market conditions, and policy can still affect prices. Suggested refinements include reviewing industry conditions, financial and operating measures, price behavior, and broader economic factors. The examples should be checked carefully: their treatment of whether losses are excluded and of the turnover constraint is not fully consistent with the prose. This is a basic stock-selection filter rather than a complete portfolio or trading plan.

Key ideas

• The screen uses turnover, circulating market value, total market value, and positive profits to select stocks.
• Its stated turnover band is 3% to 12%, with circulating value from 5 billion to 10 billion yuan.
• The article warns that positive earnings do not remove industry, economic, market, or policy risks.
• It recommends adding business, financial, price, and macroeconomic analysis, and provides no performance test.

Tags

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