A-share factor library

A-share stock-selection factor library

English research guides for common A-share factors. Each guide covers definitions, disclosure timing, tradability, exposures and out-of-sample review rather than a return promise.

Factor guides

Ten common factors

Value Factor01

Value

Definitions, timing rules, sector neutralisation and A-share backtest checks for common valuation factors.

Typical direction

Lower PE/PB/PS is commonly ranked higher; higher dividend yield is commonly ranked higher.

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Quality Factor02

Quality

Use profitability, cash conversion and leverage measures without treating a single ROE number as a complete quality score.

Typical direction

Higher profitability and cash conversion are commonly ranked higher; lower leverage and accrual risk are commonly ranked higher.

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Growth Factor03

Growth

Build growth signals with consistent comparisons, disclosure timing and valuation constraints.

Typical direction

Higher sustainable revenue, earnings and cash-flow growth is commonly ranked higher.

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Momentum Factor04

Momentum

Test trailing return signals with adjusted prices, skip periods and A-share execution constraints.

Typical direction

Higher trailing return is commonly ranked higher after a defined skip period.

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Low Volatility Factor05

Low volatility

Measure lower-risk exposures without letting suspensions or defensive-sector concentration distort the result.

Typical direction

Lower realised or downside volatility is commonly ranked higher.

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Liquidity Factor06

Liquidity

Measure trading conditions and liquidity premia while keeping capacity and micro-cap exposures visible.

Typical direction

The desired direction depends on the definition; state whether the study targets liquidity or illiquidity.

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Size Factor07

Size

Study total and free-float market value while making listing-age and tradability constraints explicit.

Typical direction

State the intended direction explicitly; smaller-cap studies require capacity review.

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Dividend Factor08

Dividend

Use implemented dividends, ex-dividend conventions and cash-flow checks when studying shareholder distributions.

Typical direction

Higher sustainable dividend yield is commonly ranked higher.

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Reversal Factor09

Reversal

Test short-horizon reversals with explicit turnover, price-limit and event-risk assumptions.

Typical direction

Recent losers are commonly ranked higher in a short-term reversal study; define the holding horizon explicitly.

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Investment Factor10

Investment

Separate operating growth from asset expansion, capex and working-capital changes using actual disclosure dates.

Typical direction

The intended direction must be tested; low asset growth is often studied as a candidate signal rather than a conclusion.

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