On July 20, Song Xuetao, chief economist at Guojin Securities, said that the reason for the recent sharp correction in global technology stocks caused the market to stall was that they had previously risen too fast, too high, and too concentrated, and that leverage and momentum trading played a significant role in amplifying the upward process. This round of adjustments was first triggered by the highly leveraged Korean market, and then gradually spread to US, Japanese, and Chinese technology stocks. The recent decline in A-shares is more due to overseas risk transmission and transactional disturbances. It does not mean that domestic growth logic and industry trends have fundamentally reversed. Looking ahead to the future market, Song Xuetao said that he is still optimistic about A-shares. The domestic economy is still in the stage of structural transformation and switching between old and new kinetic energy. Short-term total data may fluctuate, but there is still strong support from the industrial side. Investment trends in artificial intelligence, semiconductors, high-end equipment, new energy, and digital infrastructure have not been reversed, and capital expenditure and resource integration of central enterprises in strategic emerging industries continues to advance. At the same time, the advantages of the Chinese manufacturing industry in terms of a complete industrial chain, engineer dividends, cost control and delivery capabilities are still outstanding, and export competitiveness is strong and resilient. As policy funding stabilizes market expectations and external shocks are gradually digested, the market is expected to return from a general decline driven by liquidity to a structural market dominated by fundamentals and profits.

On July 20, Song Xuetao, chief economist at Guojin Securities, said that the reason for the recent sharp correction in global technology stocks caused the market to stall was that they had previously risen too fast, too high, and too concentrated, and that leverage and momentum trading played a significant role in amplifying the upward process. This round of adjustments was first triggered by the highly leveraged Korean market, and then gradually spread to US, Japanese, and Chinese technology stocks. The recent decline in A-shares is more due to overseas risk transmission and transactional disturbances. It does not mean that domestic growth logic and industry trends have fundamentally reversed. Looking ahead to the future market, Song Xuetao said that he is still optimistic about A-shares. The domestic economy is still in the stage of structural transformation and switching between old and new kinetic energy. Short-term total data may fluctuate, but there is still strong support from the industrial side. Investment trends in artificial intelligence, semiconductors, high-end equipment, new energy, and digital infrastructure have not been reversed, and capital expenditure and resource integration of central enterprises in strategic emerging industries continues to advance. At the same time, the advantages of the Chinese manufacturing industry in terms of a complete industrial chain, engineer dividends, cost control and delivery capabilities are still outstanding, and export competitiveness is strong and resilient. As policy funding stabilizes market expectations and external shocks are gradually digested, the market is expected to return from a general decline driven by liquidity to a structural market dominated by fundamentals and profits.