On August 23, Zhongtai Securities observed that the market underwent a pullback in mid-to-late August, precisely as forecasted. Following an initial rally and subsequent retreat, the market has now stabilized, characterized by diminished trading volumes. This development reinforces our mid-term outlook that the market is poised for a resurgence in September. This pullback phase presents an opportune moment for strategic position enhancement, particularly with a focus on channeling resources into the technology manufacturing and non-ferrous metals sectors. Here are the detailed strategies:

Firstly, from a medium-term perspective, investors can capitalize on the current market adjustment to bolster their allocations in the Science and Technology Innovation 50 Index, non-ferrous metals, and gold. Should concerns regarding AI revenue in September diminish further, coupled with a continued easing of expectations surrounding a Federal Reserve rate hike, the Science and Technology Innovation 50 Index is likely to embark on a sustained recovery trajectory.

Secondly, for those seeking short-term defensive strategies, priority should be accorded to manufacturing sectors known for their dividend-paying capacity, such as power equipment, energy, and chemicals. Thematic investments should concentrate on edge AI and AI applications that possess a solid foundation for commercialization.

Thirdly, a cautious approach remains warranted when considering investments in the overseas computing power sector. It is advisable to await the release of new models and the validation of revenue data at the end of the month before making any definitive investment decisions.