Screening Chinese Mainboard Stocks with RSI, Daily Gains, and Profit Growth

Summary

This stock selection method combines a technical filter with an earnings growth screen. It selects main-board Chinese equities with a 14-period RSI below 65, a daily price rise above 1%, and year-over-year growth in net profit attributable to parent-company shareholders above 20% and no greater than 100%. The article’s example implementations also exclude names containing ST and paused stocks, and rank qualifying candidates by profit growth.

The post presents the rules as a way to combine price behavior and company performance, but it provides no backtest, return series, or comparison against a benchmark. It warns that the screen omits valuation and other fundamental measures, and recommends considering additional company and industry factors alongside diversification and risk controls. The stated thresholds describe a screening recipe; they do not establish that it will produce reliable returns or perform consistently across market conditions.

Key ideas

• The screen requires RSI below 65 and a daily gain greater than 1%.
• It restricts candidates to main-board stocks and specified parent-company net profit growth.
• The example implementation excludes ST-designated and paused stocks.
• The post notes that valuation, industry context, diversification, and risk controls are not fully captured by the core filters.
• No empirical performance evidence is provided.

Tags

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