Screening Stocks by Turnover, Buy-Sell Volume Imbalance, and Earnings Growth

Summary

This Chinese A-share screening idea combines turnover between 3% and 12%, outside volume divided by inside volume above 1.3, and year-over-year growth in net profit attributable to parent-company shareholders above 20% and no more than 100%. The rationale is to find stocks with moderate trading activity, relatively stronger buying volume, and recent profit growth, in the hope that investors may later reassess their earnings prospects.

The post provides sample database and Python implementations, including industry filtering and a ranking step based on a weight involving average turnover and volume relative to price. However, the Python example adds a recent volume-spike condition not stated in the main screen, while its turnover boundaries differ slightly from the stated inclusive range. No backtest or evidence of returns is given. The author notes risks from misleading financial data and suggests checking growth stability and comparing firms within their industries; the screen alone does not establish future performance.

Key ideas

• The screen selects stocks with turnover from 3% to 12% and an outside-to-inside volume ratio above 1.3.
• It also requires year-over-year parent-attributable net profit growth above 20% and up to 100%.
• The rationale combines trading activity and buying pressure with recent company earnings growth.
• The sample Python implementation adds a recent volume increase condition absent from the stated core logic.
• The post offers no backtest evidence and recommends checking earnings stability and industry peers.

Tags

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