Screening Mid-Cap Convertible Bond Issuers with RSI

Summary

This note describes a Chinese equity screen for stocks with RSI below 65, negotiable market value between 5 billion and 10 billion yuan, and a nonempty field indicating an outstanding convertible bond. The Python example calculates a 14-period RSI, applies the capitalization and bond-presence filters, then sorts eligible stocks by percentage price change and selects up to five names when enough candidates qualify. The article frames the bond condition as an additional signal alongside technical and size criteria.

No backtest, outcome data, or evidence is supplied for the claim that this combination produces steadier selections. The author acknowledges that the screen gives limited attention to company finances and competitive conditions, and that bond-price behavior can be cyclical or sentiment-driven. Suggested improvements include profitability and growth analysis, plus convertible-bond measures such as premium and conversion price. The stated final logic mentions adding these measures, but the example does not implement them, leaving the screen primarily as a technical and issuer-presence filter.

Key ideas

• The screen requires RSI below 65, a market value between 5 billion and 10 billion yuan, and an outstanding convertible bond indicator.
• The example uses a 14-period RSI and ranks eligible stocks by percentage price change.
• The article supplies no backtest or performance evidence for the selection rules.
• It notes limited fundamental analysis and recommends profitability measures and additional convertible-bond metrics.

Tags

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