The CITIC Construction Investment Research Report points out that in the past week, South Korea's deleveraging has triggered adjustments in global technology stocks, and the computing power of A-shares has declined markedly. The market's core concerns are the extent and duration of the adjustment. We believe that the current round of shocks is mainly based on risk sentiment transmission rather than liquidity shocks: South Korea's main risk stems from the combination of triple leverage and no similar domestic leverage risk, compounded by domestic macro-liquidity easing, declining bond interest rates, and rising consumer policy expectations as the Politburo meeting at the end of July approaches. Judging comprehensively, the market does not have direct bearish conditions, and adjust the layout window to provide a dips. In terms of allocation, we focus on innovative drugs and dividends in the short term. Technology will wait for South Korea's leverage to clear before adding upstream computing power.

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