Screening for Positive MACD and Profitable Chinese Companies

Summary

The document describes a Chinese stock screen that pairs a positive MACD reading with positive net profit and positive profit for 2021. Its example calculates MACD from daily closing prices, filters a fundamentals dataset, ranks candidates by the stated 2021 profit measure, and then applies additional profitability checks including gross margin, net margin, and return on equity. The article also refers broadly to enterprise type, though the formula and example do not define a distinct enterprise-type filter.

The proposed rationale is to combine a trend signal with company profitability. The document does not report a backtest or other evidence that the conditions identify future winners. It identifies market, company, and policy changes as risks, and suggests reviewing more financial statements and adding technical indicators. The sample relies on historical financial data and does not explain publication timing or data availability, so the description alone is insufficient to establish a point-in-time implementable strategy.

Key ideas

• The core screen requires MACD above zero and positive net profit.\nIt also requires positive profit for 2021.\nThe example adds positive gross margin, net margin, and return on equity.\nThe article gives no backtest or evidence of predictive performance.\nThe enterprise-type condition mentioned in prose is not clearly implemented.

Tags

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