Screening Chinese Stocks by RSI and Parent-Company Profit Growth
Summary
This Chinese equity screen combines a 14-period RSI below 65 with year-over-year growth in net profit attributable to shareholders of the parent company above 20% and no more than 100%. It also excludes STAR Market stocks. The article presents the combination as a way to pair a technical condition with a measure of earnings growth, and includes sample formula and Python references. It provides no backtest or performance evidence.
The author cautions that the screen may be sensitive to short-term market moves and that excluding the STAR Market could omit growing companies. Suggested refinements include valuation measures such as price-to-earnings and price-to-book ratios, return on equity, and separate treatment of STAR Market stocks. The supplied descriptions and code examples are not fully consistent about market-board exclusions and data filters, so the exact implementation needs verification. The screen alone does not specify portfolio construction, trade timing, or exits.
Key ideas
- The screen combines a 14-period RSI below 65 with parent-company net-profit growth above 20% and up to 100%.\nIt excludes STAR Market stocks in the stated selection logic.\nThe method combines a technical indicator with a fundamental growth measure but includes no performance evaluation.\nThe article identifies short-term sensitivity and possible missed growth stocks as limitations.\nValuation measures and return on equity are proposed as additional filters.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.