According to the CICC research report, the index has fluctuated and consolidated since late July, and the A-share market in August may enter a recovery phase after a sharp correction. In line with the rapid market adjustment in July, it is recommended to start focusing on two main lines recently: 1) The growth of the boom still requires careful selection: after drastic adjustments in the technological style, the industry with a high enough level of prosperity can achieve high molecular growth and hedge the effect of dragging down the denominator side. AI infrastructure-related links, such as optical communication, PCB, etc., are still highly deterministic this year. Companies with more fields such as semiconductors and computing power still need to pay attention to the degree of matching fundamentals and valuations. After technological growth, the market may show a trend of differentiation; The company has entered the clinical data verification stage. It's worth watching from the bottom up. 2) Cycle improvement: Fundamentals in more and more fields are recovering from the bottom of the cycle. It is recommended to comprehensively consider the geographical situation and production capacity cycle position, and focus on areas where performance is improving and the supply and demand pattern is improving, such as power grid equipment, petrochemicals, construction machinery, and non-bank finance industries that benefit from improving capital markets; the precious metals sector is also worth paying attention to after experiencing more adjustments. The fundamental recovery in the pure domestic demand industry is still progressing relatively slowly and requires further observation. Overequipped industries in August: basic chemicals, communication equipment, power and electrical equipment, machinery, securities. Low-grade industries in August: construction and engineering, textiles and clothing, education, light and household goods, retail.

According to the CICC research report, the index has fluctuated and consolidated since late July, and the A-share market in August may enter a recovery phase after a sharp correction. In line with the rapid market adjustment in July, it is recommended to start focusing on two main lines recently: 1) The growth of the boom still requires careful selection: after drastic adjustments in the technological style, the industry with a high enough level of prosperity can achieve high molecular growth and hedge the effect of dragging down the denominator side. AI infrastructure-related links, such as optical communication, PCB, etc., are still highly deterministic this year. Companies with more fields such as semiconductors and computing power still need to pay attention to the degree of matching fundamentals and valuations. After technological growth, the market may show a trend of differentiation; The company has entered the clinical data verification stage. It's worth watching from the bottom up. 2) Cycle improvement: Fundamentals in more and more fields are recovering from the bottom of the cycle. It is recommended to comprehensively consider the geographical situation and production capacity cycle position, and focus on areas where performance is improving and the supply and demand pattern is improving, such as power grid equipment, petrochemicals, construction machinery, and non-bank finance industries that benefit from improving capital markets; the precious metals sector is also worth paying attention to after experiencing more adjustments. The fundamental recovery in the pure domestic demand industry is still progressing relatively slowly and requires further observation. Overequipped industries in August: basic chemicals, communication equipment, power and electrical equipment, machinery, securities. Low-grade industries in August: construction and engineering, textiles and clothing, education, light and household goods, retail.