Chinese Stock Screen Using RSI, Float Market Cap, and Turnover

Summary

This stock selection approach combines a technical filter with market size and liquidity constraints. It selects shares with RSI below 65, circulating market capitalization between 5 billion and 10 billion yuan, and prior-day actual turnover above 3% but below 28%. The article presents these conditions as a way to find liquid stocks while avoiding unusually high RSI readings.

The explanation describes RSI as a short-term overbought or oversold measure, market capitalization as a size filter, and turnover as an indicator of trading activity. It warns that RSI can be noisy over short horizons, turnover alone does not fully describe liquidity, and market capitalization does not establish company value. No performance evidence or backtest results are provided. The accompanying sample code does not fully match the stated rules, so the written screening criteria should be treated as the strategy definition and checked carefully before implementation.

Key ideas

• The screen requires RSI below 65.
• It restricts candidates to circulating market capitalization from 5 billion to 10 billion yuan.
• It requires prior-day actual turnover between 3% and 28%.
• The article cautions that these filters omit broader market and company fundamentals.
• The sample implementation may not faithfully represent the stated screening logic.

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