Screening Shenzhen Stocks by Valuation, Profitability, Size, and RSI

Summary

This document outlines a screen for Shenzhen main-board stocks combining a technical condition with valuation, size, and profitability filters. Candidates must have RSI below 65, a price-to-earnings ratio between zero and 29.01, a price-to-book ratio between zero and 3.11, market capitalization below 10 billion yuan, and positive net profit over the past year. The example ranking also favors smaller market capitalization, higher turnover, and stronger gross and net profit margins. No backtest results or evidence of returns are provided.

The rationale is to combine relative strength with valuation and company financial measures, rather than relying on technical data alone. The article cautions that market conditions and capital flows can affect results, and that current profitability may not persist. It also identifies industry and regional differences as limitations, recommending separate criteria by sector or location and periodic review. The screen does not define trade timing, portfolio weights, or how to respond when a company no longer meets its filters.

Key ideas

• The screen combines RSI below 65 with price-to-earnings and price-to-book limits.
• It also requires market capitalization below 10 billion yuan and positive net profit over the past year.
• The example ranks candidates using size, turnover, and profit-margin measures.
• The article presents no historical performance test or return evidence.
• Industry variation and changing profitability may weaken the screen's usefulness over time.

Tags

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