Today's market saw structural adjustments, with the Shanghai Composite Index falling 2.03%, the CSI 300 down 2.96%, the CSI 500 down 3.71%, the CSI 1000 down 2.83%, the ChiNext Index down 5.71%, and the STAR 50 Index down 7.70%. The total A-share turnover was approximately 3.47 trillion yuan, a decrease of 0.21 trillion yuan from the previous day.
Looking at sector performance, the relatively better performers were: Textile & Apparel (+1.54%), Banking (+1.18%), and Coal (+1.01%). The relatively weaker performers were: Communications (-7.49%), Electronics (-7.09%), and Computers (-3.84%).
Key Drivers of Today's Adjustment
The factors behind today's adjustment are as follows:
First, from a short-term catalyst perspective, Meta's reported plans to sell excess computing capacity have sparked market concerns about the AI investment thesis, serving as a trigger for the global AI hardware adjustment. According to reports, Meta intends to sell its surplus computing power to external clients for revenue, which has shaken market confidence in the 'scarcity of compute' narrative, directly prompting a structural shift in the global technology sector. Yesterday, some U.S. AI hardware stocks that previously benefited from the scarcity logic experienced significant declines, with drops around 10%. This morning, A-share technology stocks followed a similar pattern, with the hardware segment collectively adjusting while the software segment initially showed strength.
Mid-Term Structural Dynamics
Secondly, from a mid-term rhythm perspective, profit-taking pressure has accumulated significantly in global technology stocks, inherently necessitating a healthy structural correction. The U.S. stock market adjustment is already past its midpoint, while the A-share market is lagging slightly and experiencing a more rapid pace of adjustment. Whether it's the 'higher-for-longer rates' trade or AI narrative concerns, these are merely catalysts; the core issue remains excessive profit-taking accumulation. For A-share technology, while the broader market rose in May-June, structural divergence and valuation disparities became very pronounced. Therefore, the A-share market also requires structural adjustments to repair the valuation gap between sectors (not requiring full convergence, but at least a return to a normal differential).
Overall Market Outlook
Looking at the overall market landscape, the earnings side shows a recovery in global and Chinese economic activity, while the discount rate side has seen the adjustment of global rate hike expectations largely conclude, with limited momentum for further U.S. hikes. The movements in U.S. stocks and this morning's A-shares are more about structural realignment.
Regarding the core technology investment thesis, the most critical factors—Sino-U.S. technology policies and investments by leading tech firms—remain firm, downstream demand continues to be validated, and the timeline for a fundamental disproof of the long-term logic remains distant. Furthermore, based on long-term valuation metrics, some leading technology stocks are not excessively expensive, and valuations have not reached extreme abnormal levels.
MACD golden cross signals have formed, with some stocks performing well in the uptrend.
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