Screening Chinese Stocks by Dividend Ratio, RSI, and Price Limits

Summary

This post outlines a Chinese stock screen using a 2019 dividend-ratio threshold above 25%, an RSI below 65, and a rule excluding stocks that hit the daily price limit on the prior day. Its stated final selection logic adds price-to-earnings below 50 and price-to-book below 3. The article also provides indicator formula and Python examples, though the code contains apparent inconsistencies with the written filters, including different market-cap bounds and an incomplete result-assembly reference.

The rationale links dividends with shareholder returns and uses RSI and the prior day's price-limit status as market filters. The post warns that company fundamentals and market conditions are not fully assessed and that dividend policies can change. It recommends broader fundamental checks and industry or market-aware adjustments. No backtest results, benchmark, or evidence of predictive performance are presented, so the screen should be treated as a proposed selection rule rather than a validated strategy.

Key ideas

• The proposed screen combines a historical dividend-ratio threshold with RSI and prior-day price-limit filters.
• The stated final rules also cap price-to-earnings at 50 and price-to-book at 3.
• The post provides formula and Python examples, but some code details do not match the written conditions.
• It flags changing dividend policies and omitted fundamentals or market conditions as limitations.
• No performance test or evidence of profitability is reported.

Tags

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