Chinese Stock Screen Using RSI and Profit Growth

Summary

This screen combines a 14-period RSI below 65 with positive earnings filters for Chinese A-shares. It requires year-over-year growth in net profit attributable to parent-company shareholders to be at least 20% and no more than 100%, alongside positive 2021 net profit. The example also applies listing, trading-status, exchange, and opening-price versus 10-day moving-average conditions.

The rationale is to pair a technical condition with earnings growth and profitability, while the article cautions that industry outlook, capital structure, market conditions, and policy changes are not covered. It suggests adding other technical and valuation measures. No backtest results or performance evidence are provided, so the criteria describe a screening idea rather than a demonstrated strategy.

Key ideas

• The screen selects shares with a 14-period RSI below 65.
• It requires parent-company net profit growth between 20% and 100% and positive 2021 net profit.
• The example adds a condition that the adjusted opening price exceed its 10-day moving average.
• The article identifies omitted company, market, and policy factors as risks and reports no performance results.

Tags

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