Screen Chinese Stocks by RSI and Parent Net Profit Growth

Summary

The proposed Chinese equity screen combines a technical filter with a fundamental growth condition. It selects stocks with an RSI below 65 and year-over-year growth in net profit attributable to parent-company shareholders above 20% and at or below 100%, while excluding stocks that closed at the daily limit the previous day. The article also discusses filtering out special-treatment and suspended shares, and presents SQL-like and Python examples. Its Python example additionally sorts qualifying stocks by market capitalization.

The author frames the RSI threshold as a way to find relatively weak shares with potential to rebound, and profit growth as a sign of business strength. However, no backtest results or evidence for those interpretations are provided. The article itself cautions that short-term price signals can be distorted and may overlook company fundamentals and long-term prospects. It suggests adding indicators or fundamental measures and applying risk controls, but does not define or validate those refinements.

Key ideas

• The screen requires RSI below 65 and parent-attributable net profit growth above 20% and no more than 100%.
• It excludes stocks that were limit-up the previous day.
• The examples also apply filters for special-treatment and suspended stocks.
• The article proposes combining technical and fundamental measures but gives no backtest evidence.
• It warns that short-term price signals can overlook company conditions and long-term prospects.

Tags

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