The CITIC Construction Investment Securities Research Report believes that the pattern of market turbulence will continue, and there is no need to worry too much when the index falls. The market rebounded from a low level this week after falling earlier, and the main broad-based indices all received strong support at the lower key moving average. Considering that current A-share companies' profits are still in an upward cycle, domestic liquidity is still relaxed, the Federal Reserve has yet to raise interest rates, and the market risk appetite is still high in the third quarter, judging that the market does not yet have a basis for a bull or bear transition. As far as the current market is concerned, the core contradiction is that incremental capital is insufficient. Due to the capital stock game, the market is unable to start an all-round rise. The market structure is divided and the “seesaw” effect between sectors is obvious. High valuation levels and marginally tight global monetary policies are key reasons for the slowdown in incremental capital inflows. The market is expected to remain strong in the short term, but long-term vulnerability is rising. Looking back, after entering August, the market direction is expected to become clear. After variables such as the launch of large-scale IPOs, the FOMC meeting results, and the financial results of key companies are clear, the market is expected to determine the direction and start a new round of market conditions. The industry configuration is centered on the main line of technology+excessive decline rotation. The industry focuses on: AI, brokerage, humanoid robots, commercial aerospace, biotechnology, dividend assets, Hong Kong stock internet, etc.

The CITIC Construction Investment Securities Research Report believes that the pattern of market turbulence will continue, and there is no need to worry too much when the index falls. The market rebounded from a low level this week after falling earlier, and the main broad-based indices all received strong support at the lower key moving average. Considering that current A-share companies' profits are still in an upward cycle, domestic liquidity is still relaxed, the Federal Reserve has yet to raise interest rates, and the market risk appetite is still high in the third quarter, judging that the market does not yet have a basis for a bull or bear transition. As far as the current market is concerned, the core contradiction is that incremental capital is insufficient. Due to the capital stock game, the market is unable to start an all-round rise. The market structure is divided and the “seesaw” effect between sectors is obvious. High valuation levels and marginally tight global monetary policies are key reasons for the slowdown in incremental capital inflows. The market is expected to remain strong in the short term, but long-term vulnerability is rising. Looking back, after entering August, the market direction is expected to become clear. After variables such as the launch of large-scale IPOs, the FOMC meeting results, and the financial results of key companies are clear, the market is expected to determine the direction and start a new round of market conditions. The industry configuration is centered on the main line of technology+excessive decline rotation. The industry focuses on: AI, brokerage, humanoid robots, commercial aerospace, biotechnology, dividend assets, Hong Kong stock internet, etc.