Small-Cap Chinese Stocks Screened by Price, Amplitude, and Profitability

Summary

This note proposes screening Chinese shares for daily price amplitude above 1%, a share price of 18.5 yuan, market value under 10 billion yuan, and non-loss-making businesses. It describes sorting selected shares by trading amount. The stated rationale is to combine price movement and company size with a basic profitability filter. The article also suggests considering industry conditions, market trends, float value, and risk controls such as stop-loss and take-profit rules.

There is a material inconsistency in the examples: the prose describes companies without losses, but the formula and Python example use contradictory logic for identifying loss-making firms. The exact-price condition is also unusually restrictive, and the note does not define the observation period for profitability or demonstrate how the proposed additions would work. It gives no backtest or performance evidence, so the screen should be understood as an illustrative set of criteria rather than a validated strategy.

Key ideas

• The proposed screen combines amplitude above 1%, a price of 18.5 yuan, market value below 10 billion yuan, and a profitability condition.
• The article suggests ranking qualifying stocks by trading amount.
• Its prose says to exclude loss-making firms, but the examples conflict on the sign of the profit condition.
• The note recommends adding industry, market-trend, float-value, and risk-control considerations.
• No empirical performance evidence is provided.

Tags

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