A Low-Priced Chinese Stock Screen Using RSI and Float Market Value

Summary

The post describes a Chinese equity screening rule combining a 14-period RSI below 65, a specified range for tradable market capitalization, and a share price below 12. When at least five stocks meet the filters, the example selection function sorts qualifying names by percentage price change and returns up to five. The screen therefore mixes a simple momentum-style indicator with size and nominal-price constraints; it does not explain a fundamental valuation model despite describing the approach as incorporating valuation considerations.

The author cautions that low-priced or smaller companies may have weak business quality, high debt, or unstable performance, and that the filters can miss earnings quality and long-term prospects. Suggested refinements include adding valuation measures such as price-to-earnings or price-to-book ratios and additional technical indicators. The post supplies a rule and implementation references, but gives no performance results, transaction assumptions, universe definition, or evidence that the screen is profitable. The thresholds are presented as a strategy example rather than a validated investment recommendation.

Key ideas

• The screen selects stocks with RSI below 65, tradable market value in a stated band, and share price below 12.
• The example ranks qualifying stocks by recent percentage price change and selects up to five when enough names pass.
• The rule combines a technical indicator with market-value and nominal-price filters but does not establish business quality.
• The post warns that low-price filters can admit financially weak companies and overlook earnings quality and long-term prospects.
• No backtest or performance evidence is provided, so the screen's effectiveness is undemonstrated.

Tags

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