According to the CICC research report, there were many adjustments in the A-share market yesterday. External disturbances are compounded by financial pressure, and there are many short-term “headwind” factors. Looking ahead, we still have to wait for positive signals; the current position is not pessimistic. In the short term, the geographical situation in the Middle East continues to be tense. High energy prices are increasing inflationary stickiness, making it difficult for interest rates on US bonds to decline rapidly; the AI industry chain is in a period of verifying performance and return on investment, and the market is more sensitive to negative information; weak trading and insufficient incremental capital have also limited market recovery. At this point, we will continue to pay attention to possible marginal changes, such as the geographical situation, the possibility of improving the domestic funding environment, and the implementation of results for the third quarter. In the medium term, valuation adjustments and profit restoration are still expected to support the market. After the adjustment, the medium-term cost performance ratio of the overall valuation of A-shares has further improved, and the structural overvaluation problems faced by some sectors in the first half of the year have improved to a large extent; the whole year is expected to usher in the best performance period of the past five years; the restructuring of the global monetary order and technological narratives still support A-shares. Overall, domestic fundamentals and medium-term logic have not changed, so there is no need to be pessimistic about the mid-term market trend.

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