Screening Chinese Stocks with MACD, Positive P/E, and Institutional Net Buying

Summary

This proposed Chinese equity screen combines a positive MACD reading, positive price-to-earnings ratio, and evidence of institutional net buying. The described filter further requires net institutional purchases to be positive and recent net-buy volume to meet or exceed its three-period average, while limiting the increase over that average. Candidates are then ranked by turnover rate, with the example taking the highest-ranked names.

The note explains the MACD condition as a trend filter and the positive P/E as a basic valuation sanity check. It cautions that institutional buying may be an unreliable signal and that screen output may not match expectations, recommending additional growth, profitability, and other data checks. No backtest or performance results are presented, and the excerpt does not specify data quality, rebalance timing, or transaction costs, so the rules are illustrative rather than validated.

Key ideas

• The screen combines positive MACD, positive P/E, and positive institutional net purchases.
• Recent institutional net-buy volume is compared with its three-period average and constrained by a stated wave limit.
• Candidates are sorted by turnover rate after filtering.
• Institutional activity can be misleading, and the note supplies no performance validation.

Tags

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