Chinese Stock Screen Using RSI, Market Capitalization, Listing Age, and P/E

Summary

The post outlines a Chinese equity screening strategy that selects stocks with RSI below 65, circulating market capitalization between 5 billion and 10 billion yuan, a listing history longer than one year, and a price-to-earnings ratio no greater than 40. Its sample implementation calculates RSI from closing prices, applies the data filters, sorts eligible stocks by prior close, and considers up to five names subject to a daily price-change cutoff.

The rationale presented is to combine a technical measure with company size, listing age, and valuation. The post itself warns that the screen omits sector and policy considerations, may produce a small or concentrated candidate set, and depends on accurate, current data. It provides no backtest results or evidence that the rules identify high-quality or fast-growing companies; the thresholds and selection procedure should therefore be treated as a proposed screen rather than a validated strategy.

Key ideas

• The screen combines an RSI threshold with market capitalization, listing age, and a P/E ceiling.
• The example implementation selects up to five eligible stocks after sorting by prior close and applying a price-change filter.
• The post identifies omitted sector and policy factors, limited candidate breadth, and data quality as risks.
• No performance evidence is provided to validate the screen.

Tags

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