Chinese Stock Screening with MACD, Earnings Growth, and 10-Day Returns

Summary

The document describes a Chinese equity screen combining a positive MACD reading, year-over-year net profit growth between 20% and 100%, and a positive 10-day price return below 35%. Its accompanying example code also ranks qualifying stocks by recent trading activity and selects a small basket, with daily checks to replace holdings that no longer qualify. The stated rationale is to combine a technical trend signal, earnings growth, and short-term price momentum.

The author identifies several limitations: MACD can lag, one earnings measure may miss broader financial weaknesses, short-term returns may not persist, and restrictive filters can leave few candidates. Suggested refinements include adding technical and financial measures, easing thresholds, and improving diversification and risk controls. The examples provide implementation details, but no backtest results or evidence that the screen is profitable. There are also discrepancies between the prose and code: the query’s profit-growth filter appears inconsistent with the stated 20%–100% range, and the examples use different return calculations. These details should be resolved before relying on the screen.

Key ideas

• The screen combines positive MACD, net profit growth of 20% to 100%, and a positive 10-day return below 35%.
• The rationale pairs a trend indicator and recent price momentum with an earnings growth filter.
• The implementation example ranks qualifying stocks by trading activity and holds a limited basket.
• MACD lag, narrow fundamental coverage, weak persistence, and a small candidate pool are cited risks.
• The sample code and prose contain inconsistencies that should be checked before implementation.

Tags

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