Screening Chinese Stocks by RSI, Price, and 2021 Entry Date

Summary

This note describes a simple Chinese equity screen using three conditions: a six-period RSI below 65, a closing price below 12 yuan, and a trade date on or after the start of 2021. The conditions combine a technical indicator, a low nominal share price, and a date filter. The source gives corresponding formula references but offers no backtest, performance evidence, or rationale for why these thresholds should predict returns.

The article warns that the screen omits market sentiment and macroeconomic conditions, and suggests adding those alongside fundamental and technical measures. Its claim that the selected shares may be relatively undervalued is not established by the stated filters: a low share price alone does not measure valuation. The entry-date condition also needs careful interpretation when applied to historical data, since the described strategy does not explain how to avoid look-ahead bias or how to define the investment period.

Key ideas

• The screen requires a six-period RSI below 65 and a closing price below 12 yuan.
• It restricts candidates to stocks with trade dates on or after the start of 2021.
• The source provides formula references but no empirical performance evidence.
• Low nominal share price alone does not establish that a stock is undervalued.

Tags

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