Screening Chinese Stocks by Profitability, Weekly MACD, RSI, and Market Cap

Summary

This Chinese equity screening idea combines three filters: market capitalization below 10 billion yuan, positive net profit in each of the past five years, and RSI below 65 alongside weekly MACD above zero. The article presents the screen as a way to find smaller companies with a record of profitability and a positive trend signal. It includes a brief indicator formula and a Python example using daily prices and financial statement data, though the example is limited to one stock and does not fully demonstrate a portfolio screen.

The post offers no backtest, performance figures, or comparison with alternative filters. It cautions that technical signals and market capitalization alone can miss adverse business conditions, financial risks, and governance problems. Its suggested improvement is to examine additional financial measures and company governance. The five-year profit condition is a simple historical filter; it does not establish future earnings quality, and the post does not specify rebalancing, transaction costs, or how to resolve discrepancies between weekly and daily indicator calculations.

Key ideas

• The screen requires market capitalization below 10 billion yuan and positive net profit in each of the previous five years.
• It combines RSI below 65 with weekly MACD above zero as technical filters.
• The article provides a formula and a limited Python illustration, but no portfolio test or performance evidence.
• Company fundamentals and governance risks may remain despite passing the screening conditions.

Tags

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