Screening New Chinese Stocks by RSI and Market Capitalization

Summary

The strategy screens Chinese stocks listed after 2021, selecting those with a 14-period RSI below 65 and a tradable market capitalization between 5 billion and 10 billion yuan. The example code then ranks qualifying stocks by percentage change and returns up to five, provided at least five stocks meet the screen. The approach combines a technical indicator, company size, and recent listing date to focus on newer mid-sized companies.

The document offers no backtest, performance figures, or evidence that the selection rules predict returns. It warns that interest in newly listed stocks may encourage chasing prices and overlook fundamentals or industry prospects. It also notes that the screen does not account for longer historical price behavior. Suggested refinements include adding fundamental and industry analysis, considering another indicator or longer-term trends, and broadening the listing-age criterion. The screen is therefore a simple candidate-selection method, not a complete trading or risk-management strategy.

Key ideas

• The screen selects stocks listed after 2021 with a 14-period RSI below 65.
• Eligible stocks have tradable market capitalization between 5 billion and 10 billion yuan.
• The example ranks candidates by percentage change and returns up to five when at least five qualify.
• The document presents no performance evidence and cautions that the screen may overemphasize new listings.
• It recommends considering fundamentals, industry prospects, and longer-term price behavior.

Tags

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