July ends, August looms: the A-share market may be heading towards a rebalancing of styles.

From the overall performance of the month, the A-share market presents a pattern of "dominance of dividends and technology correction." Among the 31 primary industries in the Shenwan classification, coal ranks first with a monthly increase of 14.29%, followed by industries such as petroleum and petrochemicals, banking, food and beverages, beauty and personal care, agriculture, forestry, animal husbandry and fishery, transportation, trade and retail, home appliances, and pharmaceuticals and biotechnology. Conversely, previously high-performing technology sectors like electronics and telecommunications are now experiencing corrections. Looking ahead to the A-share market in August, Yang Chao, the chief strategy analyst at China Galaxy Securities, expressed that as the panic sentiment in July is concentrated and released, funds are shifting from the heavily congregated AI sector towards defensive sectors. The focus of the market in August may be on dual verification through policies and earnings, showing a trend of weak fluctuations upward. After the corrections in the AI-related sectors, market divergences are unlikely to converge in the short term, and a barbell strategy is recommended. Currently, the trend in the AI industry has not reversed, but the market will shift from a broad rally to a performance-driven selection, with capital potentially becoming more cautious. It is suggested to select sectors that have sustained profitability, strong earnings certainty, and can maintain an advantage in business conditions. Meanwhile, as technology chips clear out, market styles may transition from a growth-dominant style to a rebalanced style, while dividend assets still hold significant allocation value.