Chinese Stock Screen Using RSI, Market Capitalization, and Auction Buying

Summary

This Chinese stock-selection post describes screening equities with a 14-period RSI below 65, a circulating market value between 5 billion and 10 billion yuan, and strong-buying volume during the opening auction. It also describes ranking qualifying stocks by percentage change and selecting up to five when at least five names pass the filters. The stated auction condition uses large or extra-large order buying volume above 7 million units.

The post presents RSI as a way to assess overbought or oversold conditions, market capitalization as a size filter, and auction order flow as a proxy for large-investor buying. It provides a formula reference and a Python example, but no performance results or empirical validation. The author acknowledges that the approach omits fundamental analysis and that auction volumes may be noisy or anomalous. Suggested refinements include adding fundamental and technical measures and smoothing auction-volume data; these are proposals rather than tested improvements.

Key ideas

• The screen combines RSI below 65 with a circulating market value between 5 billion and 10 billion yuan.
• It filters for large or extra-large buy volume during the opening auction above 7 million units.
• The example ranks qualifying stocks by percentage change and selects up to five when at least five qualify.
• The post treats RSI and auction buying as signals, but provides no evidence that they predict returns.
• It identifies missing fundamental analysis and noisy auction data as limitations.

Tags

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