Chinese Stock Screening with RSI, Two-Day Highs, and Revenue Growth

Summary

This Chinese stock-selection example combines a technical filter with a basic revenue-growth condition. It selects shares with RSI below 65, a latest high matching the highest level of the last two days, and 2021 revenue more than 1.1 times 2018 revenue. The accompanying Python example adds practical filters for listing date, exchange segment, recent trading activity, and available historical and income data. The article presents the screen as a way to find relatively strong companies with some evidence of growth.

The document offers no backtest, performance figures, or comparison with a benchmark, so it does not establish that the conditions predict returns. It cautions that unusual revenue changes and macroeconomic shifts can weaken the fundamental signal, while excluding valuation and other company characteristics may bias selections. Suggested extensions include adding profitability measures and more trend indicators, or tuning thresholds and weights by stock. The sample is explicitly introductory: data availability, accounting fields, and implementation details may need adjustment before practical use.

Key ideas

• The screen requires RSI below 65 and a latest high equal to the highest high over two days.
• It also selects companies whose 2021 revenue exceeds 1.1 times their 2018 revenue.
• The sample implementation adds filters for listing age, exchange segment, and recent trading activity.
• Revenue anomalies, macroeconomic changes, and omitted valuation measures can undermine the screen.
• The article provides no backtest evidence and recommends expanding the fundamental and technical inputs.

Tags

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