Screening Chinese Stocks with RSI, Large-Order Flow, and Revenue Growth

Summary

This proposed Chinese equity screen combines a relative strength index below 65 with price change and net activity from very large orders, plus a revenue growth test: 2021 revenue divided by 2018 revenue must exceed 1.1. The narrative presents these filters as a way to combine technical, trading-flow, and business-growth information. Its Python illustration adds positive net flow, turnover and valuation filters, excludes several industries, ranks candidates by market capitalization and net flow, and limits the output list.

The article offers no backtest, performance statistics, or evidence that the combined signals predict returns. It cautions that market regime changes and external events can disrupt selection, and that revenue growth alone leaves profitability, cash flow, return on equity, and other fundamentals unexamined. The code is only a reference: its data ordering and indicator calculations are not fully specified, and the description of the screen is not identical to all implementation filters. The historical revenue comparison also depends on the availability and timing of reported financial data.

Key ideas

• The stated screen combines RSI below 65, price change with large-order net flow, and revenue growth above a specified threshold.
• The code example adds valuation, turnover, industry, and ranking filters beyond the headline rule.
• The proposal uses sales growth as a fundamental measure but does not assess profitability or cash generation.
• Market regime changes and external events may invalidate selections.
• No backtest or performance evidence is presented, and the implementation details require careful verification.

Tags

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