Small-Float Stock Screening with a Minimum Listing Age

Summary

This note outlines a Chinese equity selection screen based on turnover between 3% and 12%, circulating market capitalization no greater than 5.5 billion, and a minimum listing age. A Python example illustrates a five-year listing-age threshold, while the prose leaves the threshold open. The final selection description also adds positive recent earnings growth, quarterly growth above the industry average, and possible valuation and return-on-equity filters, so the proposed criteria extend beyond the example.

The stated purpose of the listing-age condition is to exclude newer companies, but the article gives no empirical test showing that this reduces investment risk or improves returns. It flags the subjectivity of the age cutoff, differences among industries, and the narrow focus on technical and liquidity factors. It recommends combining the screen with measures such as price-to-earnings, price-to-book, and return on equity, as well as monitoring market conditions. There are no performance statistics, and no entry, exit, or portfolio construction rules are specified.

Key ideas

• The core screen combines a turnover range, a circulating market-cap ceiling, and a minimum time since listing.
• The code example uses five years as an illustrative listing-age threshold.
• The expanded prose adds earnings growth and potential valuation and profitability measures.
• The article gives no performance evidence and notes that the listing-age cutoff may vary by industry.

Tags

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