According to Huatai Securities’ A-share strategy research report, recent debates surrounding AI-related narratives, a tightening of liquidity, and geopolitical disruptions have fueled increased market volatility. At present, the market has started to show some signs of adjustment, with the central market level anticipated to offer robust support by late September. With the expectation of improved liquidity conditions overseas, reduced domestic funding pressures, and a stabilization of market sentiment, the overall environment for market trends is projected to become more favorable. In terms of asset allocation, the current market valuation hovers around a reasonable central level, suggesting that moderate increases in positions may be warranted in the event of a market overshoot. Asset allocation should center on mid-term themes, with a particular focus on maintaining safety margins. Attention should be directed towards sectors such as domestically oriented consumer goods at low valuations, domestic computing power infrastructure, and innovative pharmaceuticals. Meanwhile, maintaining a stake in large financial institutions is recommended to mitigate volatility.