Screening Small Chinese Stocks by RSI, Limit-Up History, and Profitability

Summary

This screen selects Chinese equities with a market capitalization below 10 billion yuan, positive net profits over the prior three years, at least two limit-up sessions within 500 days, and a 14-period RSI below 65. The combination is presented as a way to pair recent price activity and a moderate momentum reading with basic profitability and size filters. The article also mentions positive free cash flow in its indicator formula and recommends weighing macroeconomic and industry conditions.

The document provides formula and Python references but no test results, entry timing, exit rules, or position sizing. Its descriptions vary on the fundamental criterion: the main rule refers to three years without losses, while the sample code appears to test a financial report field and does not clearly verify the full three-year history. The historical limit-up count and RSI threshold therefore define a screening idea, not evidence of an investable edge.

Key ideas

• The screen combines a sub-10-billion-yuan size limit with positive earnings and a low-to-moderate RSI reading.
• It requires at least two limit-up sessions during the preceding 500 days.
• The formula reference adds a positive free-cash-flow condition.
• The article suggests incorporating macroeconomic and industry context.
• No empirical performance, exit method, or portfolio construction rules are reported.

Tags

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