Chinese Stock Screening with RSI, Float Market Cap, and Institutional Buying

Summary

This Chinese stock selection note describes a screen combining RSI below 65, a circulating market capitalization between 5 billion and 10 billion yuan, and an “institutional bottom-fishing” condition. It presents the approach as a mix of technical, company-size, and investor-flow considerations. The note says RSI can indicate short-term overbought or oversold conditions, while float market capitalization helps distinguish company scale and associated risk. It does not define how institutional buying is measured or specify a timing rule for that condition.

The author flags dependence on market themes and institutional behavior as a potential source of unstable selections. Suggested refinements include adding valuation or earnings-growth measures and tracking changes in institutional holdings. No historical test, portfolio construction, or performance results are provided, and the institutional criterion remains underspecified, so the screen is an outline rather than a fully reproducible strategy.

Key ideas

• The screen combines RSI below 65 with a circulating market capitalization range and institutional buying.
• The note treats institutional activity as a possible signal of market interest and fund flows.
• It warns that the institutional buying condition lacks a clear definition and may be hard to time.
• Valuation, earnings growth, and changes in institutional holdings are suggested as possible refinements.
• The document provides no backtest or evidence of realized strategy performance.

Tags

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