Chinese Stock Screening with Rising Lows and Dividend Payouts

Summary

This article describes a Chinese stock screen combining three conditions: price amplitude above one, rising lows, and a 2019 dividend ratio above 25%. It presents the idea as a mix of price behavior and a historical dividend measure, then gives example implementations for a charting platform and Python. The code examples illustrate how the conditions might be combined into a selection rule, but the article provides no backtest results or evidence that the screen predicts returns.

The author notes that the screen omits broader financial and business analysis and relies on historical data. Suggested refinements include adding valuation and profitability measures, technical indicators, and consideration of economic and policy conditions, alongside risk controls. The dividend ratio is framed as a sign of past profitability, but a historical payout alone does not establish future earnings or shareholder returns. The examples also leave details such as the precise amplitude convention and the handling of missing or adjusted data unspecified, so implementation choices may affect results.

Key ideas

• The screen combines amplitude above one, rising price lows, and a 2019 dividend ratio above 25%.
• The article shows example implementations for a charting platform and Python.
• It offers no backtest evidence for the screening rule.
• The author identifies limited financial analysis and reliance on historical data as risks.
• Suggested additions include valuation, profitability, technical, macroeconomic, and policy inputs.

Tags

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