Cai Xin Securities: After experiencing rapid rotation in the market, it may enter a period of consolidation and stabilization, but the medium-term positive trend remains unchanged.

Caixin Securities research report stated that after experiencing rapid rotation in the market, it may enter a stage of consolidation and oscillation, but the medium-term positive trend remains unchanged. The current rise is driven by liquidity, which means that as long as trading volume does not shrink significantly, there is still the opportunity for active rotation in the market. Overall, it is expected that funds will continue to seek balance between technology growth and defensive sectors, showing significant structural market characteristics. In the short term, the market may enter a period of consolidation and oscillation, and it is recommended to layout with a sector rotation strategy. On one hand, areas such as AI, semiconductors, and innovative medicines in the hard technology growth sector are expected to benefit from domestic substitution and industrial upgrade dividends, with funds likely to continue switching between different sectors; on the other hand, against the backdrop of rising expectations for a Fed rate cut in September, there may be a strengthening of the weak US dollar environment, highlighting the value of investing in precious metals.