Screening Chinese Stocks by Revenue Growth, Profitability, RSI, and Market Cap

Summary

This note describes a Chinese equity screen combining a relative strength index below 65 with revenue in 2021 more than 1.1 times revenue in 2018. It further limits the universe to companies valued below 10 billion yuan and excludes loss-making firms. The suggested implementation selects a fixed number of names and holds them for one year.

The document explains that the size and profitability filters aim to refine the fundamentals-based screen, while the revenue ratio seeks companies with multi-year growth. It flags the strict size ceiling as a reason promising larger companies may be missed, and notes that financial data can lag current conditions. The article provides illustrative selection logic and sample code, but no backtest results or evidence of returns. Its implementation also leaves important details unclear, including how the stated annual revenue figures are retrieved and how the RSI input is calculated; the criteria should therefore be treated as a screening proposal rather than a validated strategy.

Key ideas

• The screen combines an RSI below 65 with revenue growth from 2018 to 2021.
• It excludes loss-making companies and caps market value at 10 billion yuan.
• The proposed portfolio selects a fixed number of stocks and holds them for one year.
• A strict market capitalization ceiling can exclude larger firms with growth potential.
• Financial statement delays and incomplete implementation details limit the screen's reliability.

Tags

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