Chinese Equity Screening with RSI, Earnings Growth, and Auction Turnover

Summary

This Chinese equity screening example combines a technical condition, a fundamental growth measure, and a trading activity filter. It selects shares with a 14-period RSI below 65, year-over-year growth in net profit attributable to the parent company above 20% and no more than 100%, and prior-day auction turnover above 0.26. The article frames the mix as a way to seek companies with earnings growth and active market participation while avoiding shares whose RSI has crossed its chosen ceiling.

The post provides formula and Python illustrations, but no backtest results or performance statistics, so it does not establish that the screen predicts returns. It also notes that the approach depends partly on technical conditions and recent flows, which may be affected by speculative sentiment and may not capture longer-term business prospects. The suggested additions, such as valuation and profitability measures, are possibilities for further research rather than tested improvements. The turnover terminology and formula translations may depend on the source platform and data definitions.

Key ideas

• The screen requires RSI below 65 and parent-company net profit growth between above 20% and 100% year over year.
• It also filters for prior-day auction turnover above 0.26.
• The article combines a technical indicator, earnings growth, and a measure of trading activity.
• No backtest evidence is reported, and the post cautions that recent flows and price behavior can be unstable.
• Valuation and profitability measures are suggested as additions, but their effect is not demonstrated.

Tags

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