Screening Chinese Stocks by RSI, Earnings Growth, and Institutional Buying

Summary

The article proposes a Chinese A-share screening rule that combines RSI below 65, parent-company net profit growth above 20% and no more than 100%, and signs of institutional buying. It presents the combination as a way to pair a technical condition with earnings growth and institutional trading activity. SQL-style and Python examples are included, but their calculations and data fields may not implement the described rule consistently; the Python example, for instance, uses percentage change in the available profit series.

The article warns that institutional activity can mislead over short periods and that RSI alone cannot represent a stock’s full price behavior. It suggests adding valuation measures, other technical indicators, and institutional flow analysis. It provides no backtest results, sample period, execution rules, or transaction-cost analysis, so the screen should be treated as a proposed selection idea rather than evidence of an effective strategy.

Key ideas

• The proposed screen combines RSI below 65, bounded earnings growth, and institutional buying.
• The stated earnings-growth range is above 20% and at most 100%.
• The article identifies institutional trading signals and RSI as potentially misleading on their own.
• It suggests adding valuation, technical, and capital-flow measures for a broader screen.
• The examples provide no backtest evidence, and their implementation details may not match the stated logic.

Tags

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