Screening Small, Profitable Chinese Stocks for Volatility and New Lows

Summary

This Chinese equity screening idea combines three filters: market capitalization below 10 billion yuan, positive profits, and a current-day low below the previous day’s low. It also requires an intraday amplitude greater than 1, with an example implementation using daily high and low prices. The author frames the conditions as a way to find smaller profitable companies experiencing price movement and a fresh low, then suggests adding liquidity, financial, and industry measures to improve selection.

The document gives no backtest, performance results, or evidence that these conditions predict a rebound or identify strong companies. It warns that small, less liquid stocks may be especially unstable and that the filters omit important fundamentals. The example code includes additional company metrics for review, but it does not define the amplitude convention or address data timing and execution. The screen is therefore a preliminary selection rule, not a tested trading strategy or a complete risk process.

Key ideas

• The screen requires positive profits and market capitalization below 10 billion yuan.
• It looks for a current-day low below the previous day’s low and intraday amplitude above 1.
• The document proposes adding liquidity, financial, and industry measures to assess candidates.
• It provides no performance testing, and warns that small, illiquid stocks may carry greater risk.

Tags

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