Selecting Stocks by Turnover, Earnings Growth, and Ten-Day Return

Summary

This Chinese equity screen combines turnover between 3% and 12%, year-over-year growth in net profit attributable to parent-company shareholders above 20% and at or below 100%, and a ten-day price gain above 0% and below 35%. The document describes the combination as a way to consider trading activity, company earnings growth, and recent market performance. It includes example indicator logic and Python code that scans stocks, applies the conditions, and ranks qualifying names by ten-day return.

The screen is presented without backtest results or evidence that these thresholds predict future returns. Its stated limitations include uncertainty in stock selection and the possibility of excluding higher-risk, higher-potential stocks. The author suggests considering policy and industry conditions and adjusting thresholds to fit individual companies. The sample code fixes a particular reporting period and has data-field and unit assumptions that should be checked before relying on it, since implementation choices can change which stocks qualify.

Key ideas

• The screen combines turnover of 3%–12%, specified net profit growth, and a positive ten-day return below 35%.
• The three filters aim to combine trading activity, earnings growth, and recent price behavior.
• The example ranks qualifying stocks by ten-day return but provides no performance testing.
• The document notes uncertainty and the risk of excluding higher-risk, higher-potential stocks.
• Policy conditions, industry trends, and implementation assumptions may affect the screen’s usefulness.

Tags

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