Screening Chinese Stocks with RSI, Earnings Growth, and a Price Cap

Summary

This stock-selection rule combines a 14-period RSI below 65, year-over-year growth in net profit attributable to shareholders between 20% and 100%, positive net profit, and a share price below 18.5 yuan. The post presents the screen as a way to find Chinese A-shares with earnings growth and a relatively low nominal share price. It includes example SQL-style and Python implementations, as well as filters for listing status, exchange, and suspended securities.

The author cautions that the rule uses a narrow set of indicators and recommends combining additional fundamental, technical, and valuation measures, with risk controls and periodic review. The text does not provide a backtest methodology or performance evidence. Its interpretation of RSI below 65 as weakness with recovery potential is not established by the rule itself, and a low share price alone does not demonstrate low valuation. The growth and price thresholds are screening choices, not evidence of expected returns.

Key ideas

• The screen requires RSI below 65 and positive net profit growth within the stated range.
• It also excludes stocks priced at or above the stated yuan threshold.
• The example implementation applies additional filters for eligible listed A-shares.
• The post recommends broader indicators, risk controls, and ongoing review.
• No backtest results are provided, and a low nominal share price does not establish low valuation.

Tags

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