CITIC Construction Investment Securities said that recently, the A-share technology sector has experienced a round of deep adjustments due to global technology linkages. Overall, it shows a gradient path from leading the second and third line signs to making up for the decline of core leaders, and the adjustments are quite adequate. This round of adjustments is a capital shock dominated by leveraged capital sales, not a disruption of industry trends. Overall, the indiscriminate fear sell-off phase is likely over, and a restorative market is expected to begin. Looking ahead to August, the four major signs indicate that financial pressure has begun to ease: first, the most intense stage of deleveraging in South Korea has passed, and the storage sector has taken the lead in stabilizing; second, A-share internal capital concerns have been concentrated, and trading congestion has clearly eased; third, the window of events such as the Federal Reserve's interest rate discussions has passed one after another, and uncertainty has declined; and fourth, the market is once again beginning to positively price good performance. The correction of core leaders is usually the end sign of a round of adjustments. As the second and third line targets and the core leaders complete risk release, the momentum for shorting the sector clearly runs out, the market pricing logic is shifting back to the fundamentals of performance, and a restorative market is expected to begin. In terms of industry allocation, the focus is on core computing power assets with sufficient adjustments and high performance certainty and the direction of benefiting from global semiconductor capital expenditure, as well as the new energy sector and machinery sector, which continue to rise in prices, and the new energy sector and machinery sector that are recovering profits.

CITIC Construction Investment Securities said that recently, the A-share technology sector has experienced a round of deep adjustments due to global technology linkages. Overall, it shows a gradient path from leading the second and third line signs to making up for the decline of core leaders, and the adjustments are quite adequate. This round of adjustments is a capital shock dominated by leveraged capital sales, not a disruption of industry trends. Overall, the indiscriminate fear sell-off phase is likely over, and a restorative market is expected to begin. Looking ahead to August, the four major signs indicate that financial pressure has begun to ease: first, the most intense stage of deleveraging in South Korea has passed, and the storage sector has taken the lead in stabilizing; second, A-share internal capital concerns have been concentrated, and trading congestion has clearly eased; third, the window of events such as the Federal Reserve's interest rate discussions has passed one after another, and uncertainty has declined; and fourth, the market is once again beginning to positively price good performance. The correction of core leaders is usually the end sign of a round of adjustments. As the second and third line targets and the core leaders complete risk release, the momentum for shorting the sector clearly runs out, the market pricing logic is shifting back to the fundamentals of performance, and a restorative market is expected to begin. In terms of industry allocation, the focus is on core computing power assets with sufficient adjustments and high performance certainty and the direction of benefiting from global semiconductor capital expenditure, as well as the new energy sector and machinery sector, which continue to rise in prices, and the new energy sector and machinery sector that are recovering profits.