Chinese A-Share Screening with Moving-Average Confluence and Dividends

Summary

This Chinese A-share screening proposal combines three filters: at least five moving averages are described as coinciding, market capitalization is capped at 10 billion yuan, and the company must have reported no loss and a 2019 dividend payout ratio above 25%. The author interprets moving-average alignment as a sign of short- and medium-term trend agreement, while the size, profitability, and dividend filters are intended to emphasize smaller, stable businesses returning cash to shareholders.

The post argues that this mix spans technical and company characteristics, then flags its narrow focus on recent trends and dividends. It also notes omitted considerations such as long-term business prospects, earnings capacity, industry conditions, and policy risks. The supplied pseudocode outlines the filters but leaves data definitions and implementation details unclear, including what constitutes moving-average coincidence and the basis for the payout ratio. It reports no backtest or investment results, so the screening rationale remains unvalidated.

Key ideas

• The screen combines moving-average alignment with market-capitalization, loss, and dividend filters.
• It targets companies below 10 billion yuan in market value that had no losses and a 2019 dividend payout ratio above 25%.
• The author treats coincident moving averages as evidence of short- and medium-term trend agreement.
• The proposed filters may overlook long-term business quality, earnings strength, industry conditions, and policy risk.
• The post supplies screening pseudocode but no backtest or performance evidence.

Tags

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