Screening Large-Cap Chinese Stocks by RSI and Earnings Growth

Summary

This document describes an A-share stock screen combining a 14-period RSI below 65, year-over-year growth in net profit attributable to parent-company shareholders above 20% and up to 100%, and free-float market capitalization above 10 billion yuan. The sample query also requires positive net profit and filters for listed, non-suspended stocks outside the STAR Market. It sorts qualifying names by free-float capitalization.

The rationale is to pair moderate technical weakness with earnings growth and larger, more liquid companies. The document provides example SQL and Python references, but the Python calculation uses percentage change in supplied net-profit data as a proxy for reported year-over-year growth. No backtest results or performance evidence are provided. The author cautions that the screen omits other financial and valuation measures, and that short-term technical signals and limited fundamentals may not suit every investment horizon. Suggested extensions include additional indicators and risk controls such as stop-loss rules.

Key ideas

• The screen requires RSI below 65, net-profit growth above 20% and no greater than 100%, and free-float capitalization above 10 billion yuan.
• The sample query additionally requires positive net profit and excludes suspended stocks and STAR Market listings.
• The stated rationale combines a technical condition with earnings growth and company size.
• The document gives no backtest evidence and notes that valuation, other fundamentals, and investment horizon remain important limitations.

Tags

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