Shenzhen Stock Screen Using Price Range and Valuation Limits

Summary

This screening approach selects Shenzhen Main Board stocks using three groups of conditions: daily price amplitude above 1%, a positive 10-day gain below 35%, and valuation limits. The article specifies a price-to-earnings ratio above zero and below 29.01, and a price-to-book ratio above zero and below 3.11. It presents the moderate positive return condition as a way to find stocks with recent gains while excluding larger rises, and describes the valuation filters as a way to avoid high-priced candidates. A code example also sorts qualifying stocks by a heat index.

The document offers a rationale for the filters but no backtest, sample, or performance results. It warns that popular sectors can carry risk and that uncertainty in financial reports and industries can affect decisions. It recommends reviewing company and industry information and considering additional indicators, without specifying or validating a complete method. The screening values should therefore be understood as proposed selection parameters, not evidence of predictive power; the supplied code and formulas may also depend on how the underlying platform defines its fields.

Key ideas

• The screen targets Shenzhen Main Board stocks with amplitude above 1% and a positive 10-day return below 35%.
• It limits price-to-earnings ratios to above zero and below 29.01, and price-to-book ratios to above zero and below 3.11.
• A heat index is used to rank qualifying names in the example.
• The article supplies no performance test and highlights sector and financial-information uncertainty.

Tags

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