Chinese Stock Screening with MACD, Positive P/E, and Board Exclusion

Summary

The document describes a Chinese A-share screening rule that selects stocks with MACD above zero, positive price-to-earnings ratios, and excludes the STAR Market. It frames positive MACD as a sign of upward momentum and positive P/E as a basic valuation filter, then ranks qualifying shares by net institutional buying amount.

It provides indicator formulas and sample screening logic, but no backtest or performance evidence. The author notes that MACD alone can miss other technical signals, positive P/E does not establish overall financial quality, and excluding a market segment narrows the opportunity set. Suggested refinements include combining more factors and adapting thresholds and rules to market conditions; these suggestions are not evaluated in the document.

Key ideas

• The screen requires MACD above zero and a positive P/E ratio.
• It excludes STAR Market shares, which the document presents as a risk-reduction choice.
• Qualifying stocks are ranked by net buying amount.
• The screen may overlook broader technical and financial information.
• The document provides formulas but no evidence of tested returns.

Tags

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