On July 2, the A-share market underwent a notable adjustment. Analysts have indicated that this correction was not triggered by a fundamental reversal but rather by the concentrated release of risks. These risks stemmed from overcrowded trading conditions within the technology sector and the fragile structures of chip-related stocks in the first half of the year. Certain high-flying stocks, which had seen substantial surges in the first half, are now confronted with severe overvaluation and excessive market expectations. Consequently, short-term pullbacks are deemed reasonable.

However, looking at the medium to long term, the overall trend of the AI industry remains unaltered. Institutions are advising investors to maintain composure, focus on sub-sector leaders (细分龙头 in Chinese, referring to leading companies within specific sub-sectors of the technology industry), and moderately allocate to high-dividend assets as a means to mitigate volatility.