Combining RSI and Profit Growth for Chinese Stock Selection

Summary

This stock-selection screen combines a technical condition with an earnings-growth filter. It selects Chinese A-shares whose 14-period RSI is below 65 and whose year-over-year growth in net profit attributable to parent shareholders is above 20% and no more than 100%, while excluding stocks associated with Beijing. The supplied screening example also requires positive net profit, excludes suspended or delisted shares, and sorts candidates by free turnover; a separate Python illustration instead describes sorting by market capitalization.

The article presents RSI below the threshold as room for recovery and the profit filter as a way to favor profitable growth while avoiding extreme growth readings. It suggests adding valuation measures, tuning thresholds, or restricting the universe by industry. These rationales are not supported by reported backtests or performance statistics, and the page itself flags omissions such as capital structure and industry differences. Results may also lag fast market changes, so the screen is a selection idea rather than evidence of a complete or validated strategy.

Key ideas

• The screen requires a 14-period RSI below 65 and annual profit growth between 20% and 100%.
• It excludes Beijing-associated stocks and, in the database example, filters for positive earnings and active listings.
• The article frames the RSI condition as a recovery signal and profit growth as a quality screen.
• Valuation measures, other indicators, parameter changes, and industry filters are suggested as possible refinements.
• No backtest or performance evidence is provided, and the screen omits other company and industry characteristics.

Tags

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