A-share market is consolidating in a volatile manner, institutions claim that short-term selling pressure may have been released in a concentrated manner.

On July 17, the A-share market saw a heavy decline in trading volume, with the Shanghai Composite Index falling by 3.05% to below 3800 points, the ChiNext Index dropping by 7.15%, and the Sci-Tech 50 Index falling by over 7%. More than 5000 stocks in the market were in decline. Looking at a longer time frame, the volatility of the A-share market has significantly intensified since late June. Regarding the recent market adjustment, this week's broker strategy outlook reports have formed a consistent consensus: the adjustment is mainly a result of micro liquidity shocks in overseas technology assets and cross-market resonance linkage, with no fundamental changes in the A-share market fundamentals. As the selling pressure on technology stocks is released, the short-term emotional release may be coming to an end, and momentum for recovery after overselling is building up.