Short-Term Chinese Stock Screening with RSI, Turnover, and Fundamentals

Summary

This note proposes a short-term Chinese equity screen combining price movement, activity, and fundamental filters. It selects stocks with an intraday range above 1%, at least one daily gain of 10% or more during the prior 25 trading days, and prior-day turnover above 8%. Its final stated logic also requires price-to-book below the industry average and positive year-over-year net-profit growth, then ranks candidates by market heat. The document provides indicator and Python examples, but no measured returns, benchmark comparison, or validation of the implementation.

The strategy is intended to identify active stocks with recent sharp gains and substantial trading participation. The note flags risks from short-term price chasing, dependence on recent observations, possible reversals, and neglect of longer-term business value. It recommends adding financial and industry analysis, medium-term trend measures, and liquidity checks, and treating the screen as one input rather than a complete investment process. Some example calculations do not clearly correspond to the stated turnover and range conditions, so the examples should not be taken as proof that the rules are correctly implemented.

Key ideas

• The stated screen uses an intraday range threshold, a recent large daily gain, and high prior-day turnover.
• Its expanded rules add below-industry-average price-to-book and positive year-over-year profit growth.
• Candidates are ranked by market heat, with no backtest or performance evidence supplied.
• The note cautions that recent price and activity signals can reverse and recommends broader fundamental and trend checks.

Tags

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