Screening Shanghai-Listed Stocks by Turnover and Net Profit Growth
Summary
This Chinese equity screen first limits the universe to stocks whose codes begin with 60 and whose turnover rate is between 3% and 12%. Within that group, it selects companies with year-over-year growth in net profit attributable to parent-company shareholders above 20% and up to 100%. The rationale is to seek firms with substantial but bounded earnings growth and a specified level of trading activity.
The article describes the selection criteria and includes sample code, but offers no backtest or performance evidence. It warns that the filter ignores other influences, including seasonality and market conditions, and does not specify a risk-control method. The accompanying optimization suggestions include adding technical indicators and dynamic stop levels; these additions are recommendations, not tested parts of the original screen. The stated strategy should therefore be treated as a basic screening rule rather than a complete trading system.
Key ideas
- The screen restricts candidates to stocks with codes beginning with 60 and turnover between 3% and 12%.
- It selects for year-over-year parent-company net profit growth above 20% and no higher than 100%.
- The article gives sample implementation guidance but no backtest or evidence of investment performance.
- Seasonality, market conditions, and risk controls are not incorporated into the core criteria.
- Adding technical filters or dynamic stops is suggested but not evaluated.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.