Small-Cap Profitable Chinese Stocks with RSI Below 65

Summary

This Chinese equity screen selects companies outside the STAR Market with market capitalization below 10 billion yuan, no reported losses, and a 14-period RSI below 65. The article includes a sample Python implementation using historical prices, market capitalization, and profit-statement data to filter a stock list.

It offers a screening recipe rather than evidence of a tested trading strategy: no backtest, portfolio rules, holding period, or performance results are reported. The author cautions that focusing on small size and profitability can exclude larger firms or companies with promising but uneven earnings, and may overlook valuation and growth. Suggested refinements include adding revenue and profit growth or return on equity, adjusting the size threshold, and combining several fundamental measures. Data definitions and the sample code's handling of losses may not exactly match the stated screening rule, so the implementation would need validation before use.

Key ideas

• The screen combines a 14-period RSI below 65 with a market-cap ceiling and a profitability filter.
• It excludes companies on China's STAR Market.
• The article provides sample code but reports no backtest or performance evidence.
• The author recommends adding growth and other fundamental measures and reconsidering the market-cap range.

Tags

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