According to the strategy report released by China Merchants Securities, the recent surge in volatility within China's A-share market can be attributed, in part, to the spillover effects of heightened instability in overseas technology sectors. This is particularly evident in the amplified leverage impacts observed in the South Korean market and the market dynamics influenced by Meta in the US stock market, both of which have significantly contributed to market turbulence.

From an industry perspective, the report advises investors to closely monitor emerging trends within China's domestic computing power sector. Notably, at the forthcoming Artificial Intelligence Conference, Huawei is set to unveil, for the first time, the Atlas 950 SuperPoD, the industry's largest-scale super-node real machine.

Meanwhile, the Hong Kong stock market has recently experienced a notable rebound, primarily fueled by Alibaba's earnings forecast. However, the research report posits that the rebound and subsequent recovery in Hong Kong stocks, which were largely driven by oversold conditions, may have reached their culmination. The potential for sustained market gains will hinge on improvements in the overall earnings performance of Hong Kong-listed companies and an increase in the proportion of AI-related revenue among leading firms. Both factors will require validation during the upcoming interim reporting period.