CITIC Securities: In August, the market entered a phase of oversold rebound, with technology concentrating on core assets, and an increased allocation in energy, non-ferrous metals, non-banking innovation, and pharmaceuticals.

CITIC Securities released a research report stating that the market was in a stage of oversold rebound at the beginning of August, with greater elasticity in varieties that had previously fallen more significantly. Currently, the year-to-date returns of the non-ferrous metals, chemicals, non-banking financials, and new energy sectors are still below theoretical midpoints. We conducted a quantitative assessment of the repair progress of popular sectors from three perspectives: the perspective of holding costs indicates that the unrealized loss pressure is concentrated in technology growth and small-cap stocks, which need further digestion; from the perspective of financing, the clearing progress of the leading direction in this round has passed the halfway mark; and from the perspective of market congestion, the trading activity in the technology sector has not yet fallen back. Overall, the recovery progress in electronics, non-ferrous metals, innovative pharmaceuticals, and non-banking financials is relatively fast, while chemicals, new energy, and telecommunications are slower. In terms of allocation, technology holdings continue to concentrate on core assets, while the non-technology portion increases allocation to energy chemicals, non-ferrous metals, innovative pharmaceuticals, and top-tier securities firms.