Screening Stocks by Turnover, Float Size, and Share Price

Summary

This note describes a Chinese equity screen combining turnover between 3% and 12%, circulating share capital no greater than 5.5 billion shares, and a share price below 12 yuan. Its stated rationale is to focus on stocks with moderate trading activity, a limited float, and a low nominal price. A Python example adds a price-to-earnings filter below 20, while the final selection description and formula emphasize turnover, float market capitalization, and price; the criteria are not fully consistent about the float measure.

The article offers no backtest, performance figures, or evidence that these filters identify growth opportunities. It warns that relying on size and price while overlooking fundamentals and short-term trends creates risk, and suggests adding valuation and quality measures such as price-to-earnings, price-to-book, and return on equity. The screen is therefore a preliminary candidate filter, not a complete trading strategy, and its thresholds are presented without validation or a holding and exit method.

Key ideas

• The screen uses turnover between 3% and 12%, a capped float measure, and a share-price ceiling.
• A code example additionally applies a price-to-earnings threshold below 20.
• The article does not provide backtest results or evidence of profitability.
• It recommends combining the screen with valuation and fundamental measures such as price-to-book and return on equity.

Tags

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