Screening Chinese Equities with MACD, Market Cap, and Profitability Filters

Summary

This Chinese equity screen combines daily price movement, company profitability, market capitalization, and MACD. It initially selects companies with daily high-to-low movement above 1%, market capitalization below the stated ceiling, positive net profit, and a positive daily MACD reading. The accompanying discussion treats positive MACD as a momentum signal and proposes adding financial and growth measures, industry assessment, and tighter screening criteria.

The document offers example indicator and Python logic, but no historical test results or evidence that the proposed filters improve returns. Its sample code adds further conditions for growth, valuation ratios, cash flow, and sustained return on equity; these are suggestions rather than validated parts of the stated screen. The authors identify risks from relying on recent price action, loose quality criteria, and limited consideration of business prospects or macroeconomic conditions. The screen therefore describes a candidate-selection idea, not a complete trading system or demonstrated investment method.

Key ideas

• The initial screen combines daily MACD above zero with positive profitability, a market-cap limit, and daily range above 1%.
• The discussion interprets positive MACD as evidence of upward momentum, but provides no performance test.
• Suggested refinements include financial quality, growth, valuation, cash flow, and industry analysis.
• The document warns that price-based filters may overlook business durability and economic or policy conditions.
• The example code adds filters beyond the initial screen, so its detailed selection logic is not fully consistent with the headline criteria.

Tags

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