Chinese Stock Screen Using RSI, Market Capitalization, Dividends, and Profit Margin

Summary

The post presents a Chinese-equity screening idea that combines a relative strength index filter with a range for tradable market capitalization and dividend-related criteria. Its initial description refers to a historical dividend proportion, while its later proposed version uses dividend yield above a threshold and net profit margin above a threshold. The example implementation calculates RSI from closing prices and filters stocks using market capitalization, dividend yield, and profit margin; it then applies additional selection rules to form a short list.

The post offers no backtest results or evidence that the screen produces superior returns. It cautions that relying on a few indicators and a past dividend measure may miss industry effects or changes in company fundamentals, and suggests broadening the fundamental and sector analysis. The discrepancy between the initial conditions and the final screen should be resolved before implementation, and the supplied example should be checked against the data definitions and trading rules of the chosen platform.

Key ideas

• The screen combines RSI with market capitalization and dividend-related filters.
• The proposed final version also requires a minimum dividend yield and net profit margin.
• The example ranks qualifying stocks and applies an additional price-change condition.
• The post provides no performance evidence and flags risks from narrow filters and stale dividend information.
• The initial screen and final proposed screen use different dividend criteria.

Tags

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