Screening Shenzhen Stocks by RSI, Earnings Growth, and Valuation

Summary

This stock selection method combines a technical filter with earnings growth and valuation criteria. It selects Shenzhen main-board stocks whose RSI is below 65, whose parent-company net profit growth is above 20% and no more than 100%, whose price-to-earnings ratio is between 0 and 29.01, and whose price-to-book ratio is between 0 and 3.11. The accompanying examples describe filtering out suspended, special-treatment, and selected financial or property-sector stocks, then ranking candidates by trading amount.

The article argues that the growth and valuation filters seek growing companies at moderate prices, while the RSI condition is interpreted as possible upside after relative weakness. It supplies example screening logic, but no backtest, returns, or evidence that the conditions predict gains. It also notes that relying on these few measures may exclude good companies or miss other important signals, and suggests adding measures such as return on equity or PEG and tailoring filters by industry. The thresholds and market context are specific to the described screen and are not shown to generalize.

Key ideas

• The screen combines RSI below 65 with parent-company net profit growth above 20% and at most 100%.
• It limits candidates to stated price-to-earnings and price-to-book ranges in Shenzhen main-board stocks.
• The article interprets relative weakness alongside earnings growth and valuation as a possible selection approach.
• The article provides screening examples but no backtest or evidence of returns.
• The author notes that a narrow set of filters can miss strong candidates and suggests adding company and industry measures.

Tags

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