Wei Tao, deputy general manager of Huaxi Securities and director of the Research Institute, said on July 22 that judging from the rules of market operation, this round of pullback is essentially a benign technical repair to the rapid rise in the previous period. Since April 2026, the main line of technology has continued to strengthen, and valuations of some racetracks have risen rapidly. Objectively, the market has intrinsic demand for valuation return and chip exchange. After recent continuous adjustments, the profit market accumulated in the previous period has been digested to a certain extent, and short-term irrational selling pressure has been partially released. Wei Tao said that the conditions for the current market rebound are gradually maturing. From a valuation perspective, the major broad-based indices have fallen back to a relatively low level during the year, and the margin of safety has increased markedly; from a financial perspective, market leverage risks have been effectively cleared, and the balance of the two loans has declined significantly, while mainstream broad-based ETFs continue to receive capital acceptance at low levels, indicating that medium- to long-term capital recognition of the current position is increasing. As congestion recedes and the transaction structure is balanced, the technical level has opened up room for rebound repair.

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