In the past, string prediction (also known as string matching) was applied only to RGB and YUV 4:4:4 format screen content coding. This paper proposes a string prediction approach to 4:2:0 format screen content coding implemented in the third generation of Audio Video Standard (AVS3) in China. String prediction is applied to both YUV CU and Y CU. To further improve the coding performance, several improved technicals of string prediction are presented, including a mixed string searching strategy for finding the optimal reference string, a joint picture-level, CU-level, and pixel-level early termination strategy to reduce coding complexity, and two effective coding methods for string prediction parameters. For low-complexity hardware implementation of string prediction decoder, the memory access bandwidth is reduced by introducing string constraints. Meanwhile, string prediction reuses the reference pixel buffer of intra block copy (IBC). Compared with the newest AVS3 reference software HPM7.0 with string prediction disabled, the proposed string prediction approach achieves up to 18.48% Y BD-rate reduction. Using AVS3 Screen Content Coding (SCC) Common Test Condition and YUV test sequences in Text and Graphics with Motion category, the proposed technique achieves an average Y BD-rate reduction of 10.33%, 8.47%, 6.91% for All Intra (AI), Random Access (RA) and Low Delay (LD) configurations, respectively, with low additional encoding and decoding complexity. The proposed string prediction approach has been adopted in the newest AVS3 reference software HPM7.0.