Chinese Equity Screen Combining RSI, Profit Growth, and a Rising 30-Day Average

Summary

This Chinese A-share selection rule combines a technical condition with a company earnings filter. It selects stocks with RSI below 65, year-over-year growth in net profit attributable to parent-company shareholders above 20% and at most 100%, and a rising 30-day average. The article presents the combination as a way to screen for shares with both earnings growth and a favorable recent price trend, and includes example SQL-style and Python-style implementation references.

The document provides no backtest results or evidence that the screen generates positive returns. It also flags limitations: market swings and changing financial data can affect its accuracy, one moving-average horizon may miss broader price behavior, and the screen omits other financial-statement measures such as balance-sheet and cash-flow analysis. Its rationale for RSI below 65 is not fully developed, and the examples may not implement every condition in precisely the same way, so the rule would need careful validation before use.

Key ideas

• The screen requires RSI below 65 and net profit growth above 20% but no greater than 100%.
• It also requires the 30-day average to be rising as a price-trend filter.
• The approach combines technical price conditions with an earnings-growth condition.
• The article identifies missing balance-sheet and cash-flow analysis as limitations.
• No performance evidence is provided, so the screen’s returns remain unestablished.

Tags

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