1. Purpose This stock research program is trying to deduct patterns from A shares in the Chinese Stock Market. The goal is to be able to predict to certain degree how the market will perform in the long or midterm. Statistical methods are used to create a overview of the market.

2. Time My research conducts all avialable data from the begin of Chinese Stockmarket from 1990. Most most of the time, stock data from 2000 or later are used since 1990 - 2000 periods are not representative anymore in 2020.

3. Asset My research is done on all listed stocks, all listed public traded Funds and all listed public Index that can be found in the Tushare.pro database.

4. Important Libraries used Python Pandas, Python Scipy, https://tushare.pro/

5. Methodology 5.1 Ranking of all time best stocks, ETF, index, industry Coming soon..

5.2 Creating the model and predicting the future market Coming soon..

5.3 Varioues Strategy for short, mid, and long term trading Coming soon..

6. Indicators I distinguish between technical and fundamental indicators

7. Findings Summary: There are many many things that can be said about the stock market, but here are my most important findings that I have not seen anywhere else:

8. The two Chinese industries are Biotechnology, Alcohol and Beverages. They are by far the two best industries. Buying these two industries ETF and hold can beat the general market by far.

9. The best public listed Funds are B Level Funds of these previous two named industries: Biotechnology, Alcohol and Beverages. They have the lowest volatility and the highest overall gain

10. From 2010 to 2020 about 70% of the 创业板 listed Stocks are NOT ABLE TO BEAT 创业板 index. Buying 创业板 Index has a significant chance to outperform other 创业板 Stocks.

11. From 1990 to 2020 about 50% of all 主板 listed Stock outperform Shanghai Composite Index.

12. From 1990 to 2020 about 50% of all 中小板 listed Stock outperform Shenzhen Composite Index.

13. From 1990 to 2020, IN AVERAGE the first and last week of the year, the stock market will move up 2%. The volatility of the upmove between the years are very low. This means that this finding has a very high significance. You can setup a much heavier position at these times and expect the market to rise with only few deviations. These two weeks will have a higher risk/return ratio than any other investement.

14. Speaking about seasonal effect, the Chinese new year has also a very significant effect on the general A share market. Month before and after the new year is usually the best time of the year. Unlike the new year effect, the national day in October seems to have no observed effect on the stock market.

15. Fundamental data ARE USEFUL in the LONG RUN. They are only updated couple times a year in monthly or quarterly report. Since their update frequency is so low frequent, they are not able to predict the high frequency of the dailing volatile stock market movement. In short RUN, FUNDAMENTALS are useless.

16. Technical data ARE USEFUL, especially when the Chinese Market has a low percentage of Institutional traders compared to the US market. Non-institutional traders teed to believe in technical indicators, so the market becomes a self-fullfilling prophicy.

More partial findings are noted as comment in the Sandbox.py in Q&A Form.

You can PM me or contact me a [email protected]