Screening Stocks by RSI, Earnings Growth, and Free-Float Shares

Summary

This stock-selection approach combines a 14-period RSI below 65 with year-over-year growth in net profit attributable to parent-company shareholders above 20% and no greater than 100%. It also limits free-float shares to 5.5 billion. The document presents these filters as a way to identify Chinese stocks with earnings growth and a relatively limited share float, and includes reference SQL and Python implementations.

The article does not provide historical returns, a benchmark comparison, or evidence that the screen produces attractive investments. Its explanation characterizes the RSI condition as a sign of relative weakness with potential recovery, but that interpretation is not demonstrated. The source itself notes that the selection omits factors such as industry outlook, capital structure, and broader financial quality, and that market or policy changes can affect results. The examples also rely on particular data fields and calculations, so implementation requires checking that reported earnings growth and share counts are consistently defined and available.

Key ideas

• The screen requires 14-period RSI below 65.
• It selects for net profit growth above 20% and at most 100% year over year.
• It caps free-float shares at 5.5 billion.
• The document offers SQL and Python examples but reports no backtest results.
• Industry outlook, capital structure, and wider financial conditions remain outside the screen.

Tags

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