Chinese Stock Screen Using RSI, Seven Declines, Dividends, and Market Value

Summary

This post proposes a Chinese equities screening rule combining a relative strength index below 65, seven consecutive declining sessions, and a 2019 dividend payout measure above 25%. Its final version adds a market-value range of 5–20 billion yuan. The post also sketches how the conditions might be checked with market and financial data, including a test for declining closes and a dividend field.

The author frames the screen as a blend of price behavior and company fundamentals, and suggests broadening it with valuation, profitability, industry, capital-flow, liquidity, and size information. The document provides no backtest, selected-stock list, or evidence that the rules produce attractive returns. It also uses different descriptions of the seven-day decline condition in prose and its example, and the meaning and timing of the historical dividend measure may need verification before use. The screen is therefore a candidate rule set, not a validated strategy.

Key ideas

• The proposed screen combines RSI below 65 with seven consecutive declining sessions.
• It adds a historical dividend measure above 25% and a market-value range of 5–20 billion yuan.
• The post suggests adding valuation, profitability, industry, capital-flow, and liquidity filters.
• No backtest or performance evidence is provided, so the selection rule remains unvalidated.

Tags

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