The research report issued by Galaxy Securities highlights that the market's attention this week will be firmly fixed on the dual assessment of policies and corporate earnings. The July meeting of the Central Political Bureau has charted the course for macroeconomic policies and industrial development for the latter half of the year. Concurrently, the flurry of financial report releases from U.S. tech behemoths is set to exert a direct influence on the valuation and investor sentiment surrounding the A-share technology sector, driven by their earnings performance, technological innovations, and planned capital expenditures. The A-share market is presently navigating through the semi-annual report disclosure phase, with the fundamentals of earnings emerging as pivotal factors shaping market trajectories.

Moreover, the geopolitical tensions between the U.S. and Iran, coupled with volatility in commodity prices, continue to inject an element of uncertainty into the short-term market outlook. In light of these dynamics, it is advisable to adopt a balanced short-term investment allocation strategy. This entails, on one hand, awaiting the realization of mid-year earnings within tech sub-sectors and strategically positioning in consistently profitable core segments. On the other hand, it involves capitalizing on rebound opportunities in sectors that are currently undervalued.