Selecting Chinese Stocks by Three-Day Declines, Turnover, and Float Value

Summary

This document describes a Chinese equity screen that looks for stocks with turnover between 3% and 12% and circulating market value between 5 billion and 10 billion yuan. Within those limits, it selects stocks whose closing price has fallen on each of the latest three days relative to the previous close. The stated rationale is to identify shares at a lower price for a possible buy-low, sell-high approach.

The post supplies a screening formula and a Python example, but no performance results or backtest evidence. It also notes that the screen relies only on price movement and omits company fundamentals and financial data, making it vulnerable to market sentiment and noise. Suggested additions include technical indicators and financial measures, though the document does not evaluate whether these improve outcomes. The code examples and screening logic should be checked for consistency before use.

Key ideas

• The screen restricts candidates by turnover and circulating market value.
• It selects stocks with closing prices that decline for three consecutive sessions.
• The proposed rationale is to look for lower-priced shares for a potential rebound or later sale.
• The document provides example screening logic but no backtest or performance evidence.
• Price-only selection omits fundamentals and may be affected by sentiment and market noise.

Tags

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