Screening Shenzhen Main Board Stocks by Limit-Ups and Valuation

Summary

This daily stock-selection method combines price activity, past limit-up events, and valuation filters. It screens Shenzhen Main Board stocks for amplitude above 1, at least two limit-ups during the prior 500 days, a price-to-earnings ratio between 0 and 29.01, and a price-to-book ratio between 0 and 3.11. The article interprets the valuation ranges as a way to identify relatively lower-valued companies, while the limit-up history selects stocks that have previously shown sharp upward moves.

The article describes the conditions and gives illustrative screening logic, but supplies no backtest or evidence that the combination forecasts future returns. It cautions that valuation data may be unreliable or manipulated and that both valuation ratios can fluctuate with the measurement window. It recommends using dependable data sources and considering rolling calculations. The screen is limited to a particular Chinese market segment and depends on the definitions and quality of its historical price and accounting data.

Key ideas

• The screen combines amplitude, a history of limit-up events, and valuation ranges for Shenzhen Main Board stocks.
• It requires at least two limit-ups in the prior 500 days and specified price-to-earnings and price-to-book ranges.
• The article presents lower valuation as a filtering rationale but does not report strategy performance.
• Valuation data quality and calculation windows can affect the stability of the screen.

Tags

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