Chinese Stock Screen Combining MACD, Earnings Growth, and Limit-Ups

Summary

This Chinese A-share screening idea combines three conditions: MACD is above zero, parent-company net profit growth is above 20% and no more than 100%, and the stock has reached the daily limit-up at least twice in the prior 500 days. The intended rationale is to find companies with fast earnings growth and evidence of strong market interest. The article also supplies example screening and trading code, including a weekly selection routine and a shortlist of stocks.

The accompanying discussion warns that profit growth alone can miss important financial details, and that past limit-ups do not establish a reasonable current valuation or predict future performance. It recommends adding technical and fundamental checks, investigating the catalysts and sentiment behind sharp rises, and applying risk controls. The proposed final screen adds supportive market sentiment, but does not define how to measure it. No backtest results are reported, and the code examples contain implementation details that may not exactly match the prose rules, so the screen needs careful validation before use.

Key ideas

• The screen requires MACD above zero and year-over-year net profit growth above 20% and at most 100%.
• It also requires at least two limit-up events within the preceding 500 days.
• The article frames earnings growth and past price surges as signs of company growth and market interest.
• Limit-up history can reflect stale information or an overheated price, so the signal needs broader fundamental and market checks.
• The suggested addition of supportive sentiment is not operationally defined, and no performance evidence is provided.

Tags

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