Screening Chinese Stocks by RSI, Price, Market Cap, and Profitability

Summary

The document outlines a Chinese equity screen combining a six-period RSI below 65, a share price below 12 yuan, market capitalization below 10 billion yuan, and no losses over the prior five years. It presents the mix as a way to combine a technical condition with size, price, and profitability filters. Example implementation notes also mention excluding special-treatment stocks, favoring companies with positive profitability and revenue, and limiting the final selection to 30 stocks.

The article warns that focusing on size and past earnings may exclude high-growth companies, and that RSI alone can be swayed by broad market conditions. It suggests adding sentiment, macroeconomic, and other fundamental measures, but gives no tested results or rules for combining them. The sample code and stated rules are not fully consistent: the code introduces additional filters, while some five-year financial conditions are not clearly implemented. The screen is therefore a starting specification, not evidence of a validated strategy or a complete portfolio and risk-management method.

Key ideas

• The screen combines RSI below 65 with price and market-cap ceilings and a five-year no-loss condition.
• The article suggests filtering out special-treatment stocks and considering revenue and debt-related measures.
• The proposed screen is exposed to broad market moves and may miss high-growth companies.
• The examples add conditions beyond the core rules and do not demonstrate historical performance.

Tags

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