Chinese Equity Screening with RSI, Profit Growth, and Turnover

Summary

This Chinese equity screening example combines a technical indicator, earnings growth, and trading activity. Its stated criteria are RSI below 65, year-over-year growth in net profit attributable to parent-company shareholders above 20% and no more than 100%, and prior-day actual turnover above 3% and no more than 28%. The post presents the screen as a way to find companies with growing profits and a moderate level of market activity, while interpreting the RSI threshold as indicating a possible buying opportunity.

The author notes that market moves, changing financial data, and investor sentiment may affect results, and that the screen omits valuation and balance-sheet measures. It suggests adding indicators and financial metrics for a fuller assessment. The included implementation examples do not clearly establish that all calculations correspond to the stated criteria: for example, the code’s volume-change calculation is not necessarily equivalent to actual turnover. No backtest, portfolio rules, or performance evidence is provided, so the screen should be treated as an unvalidated selection idea.

Key ideas

• The screen requires RSI below 65 and specified year-over-year profit growth between above 20% and 100% inclusive at the upper bound.
• It also filters on prior-day actual turnover above 3% and up to 28%.
• The post combines technical, fundamental, and trading-activity criteria but gives no performance results.
• It warns that omitted valuation and balance-sheet measures limit the assessment of company risk.
• The example calculations may not implement the stated criteria consistently.

Tags

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