Stock Screening by Capital Intensity and Positive Institutional Activity

Summary

This post outlines a Chinese stock-screening idea that orders shares by “capital intensity” and keeps those with positive institutional activity, with 2021 specified as the target year. It defines capital intensity as trading volume relative to free float market capitalization, interpreting higher values as stronger fund inflows and potential upward momentum. Institutional activity is described as institutions’ net buying or selling, with positive readings treated as a sign of institutional interest.

The post flags possible manipulation of volume or float data and notes that institutional activity can vary with market sentiment. It also observes that historical performance depends on future market conditions. The proposed improvements include adding valuation measures such as price-to-earnings and price-to-book ratios, technical measures such as moving averages or MACD, and systematic trading approaches. However, the final selection logic shown is incomplete, and the document supplies no defined measurement windows, constituent list, backtest, or return evidence. The screening rationale is therefore a rough hypothesis, not a validated strategy.

Key ideas

• The screen ranks stocks by trading volume relative to free float market capitalization.
• It treats positive institutional net activity as a favorable selection condition.
• The post associates higher capital intensity with possible buying pressure, without presenting empirical support.
• It identifies data manipulation and changing market sentiment as risks.
• The final selection logic is incomplete and no backtest results are reported.

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