Chinese Stock Screening with Revenue Growth, RSI, and Dividend Payout

Summary

This note describes a Chinese equity screening rule combining a relative-strength index below 65, revenue in 2021 more than 1.1 times 2018 revenue, and a 2019 dividend payout ratio above 25%. The intended rationale is to pair revenue growth with a dividend history and avoid stocks with a high RSI. It also mentions limiting the formula output to 100 stocks. The document gives formula and Python examples, but the examples do not consistently implement the stated revenue comparison and dividend ratio, so they should not be treated as a verified specification.

The author flags dependence on accurate financial data and warns that a past dividend ratio may change with earnings or company policy. The screen also lacks broader company, industry, and market analysis. Suggested additions include valuation measures, other technical indicators, and dividend-related measures such as yield. No backtest, performance figures, or evidence that the screening conditions predict returns are provided, so the criteria are best understood as a candidate filter rather than a demonstrated strategy.

Key ideas

• The screen combines RSI below 65 with revenue growth from 2018 to 2021 and a 2019 dividend payout threshold.
• The stated revenue condition requires 2021 revenue to exceed 1.1 times 2018 revenue.
• The article proposes historical dividend payout as a way to focus on companies with a record of distributions.
• Past payout data can become stale when earnings or company policy changes.
• The examples do not fully match the written screening rule, and no performance validation is reported.

Tags

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