Chinese Stock Screening by Profitability, Size, Heat, and RSI

Summary

This Chinese A-share screening proposal combines company fundamentals, stock popularity, and technical filters. It selects companies below a stated market-cap threshold, excludes firms with negative net profit, and ranks candidates by a heat measure. The written description also requires a 14-period RSI below 65. Its Python example further checks whether the latest open is above a 10-day average of opening prices, narrowing the ranked list before applying the RSI condition.

The article frames profitability and size filters as ways to add fundamental context, while acknowledging that they can omit promising firms and that popularity and valuation can shift with market conditions. It suggests adding valuation and broader risk measures, but does not provide historical test results or evidence of an investment advantage. The prose and code are not fully aligned: the code truncates the popularity ranking to a subset, adds a moving-average condition absent from the stated final rules, and uses data-source fields whose definitions are not explained. These choices need clarification before the screen can be reproduced or evaluated.

Key ideas

• The proposed screen combines a market-cap ceiling, positive net profit, a popularity ranking, and RSI below 65.
• The code example also requires the latest opening price to exceed a 10-day average of opening prices.
• The article gives no backtest results or evidence that the combined filters improve returns.
• The written criteria and code differ in ranking and price filters, so the screening rules need clarification.

Tags

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