At present, overseas risks are overall relatively manageable, and the earlier panic selling is likely to create better short-term allocation opportunities. Recently, the broader market has generally shown a range-bound pattern of "topping out above and bottoming out below," but as short-term external risk shocks are gradually priced in and reach their peak, we believe a stabilization and rebound in the market is worth anticipating.

Specifically: First, the disclosure of third-quarter reports in October is approaching, which is also a period when 2027 capacity planning and industrial clues increase, and some technology stocks have already seen valuations fall to reasonable levels after sustained adjustments. Second, overseas AI-related individual stocks have broken through previous resistance levels, and under sentiment spillover, A-share technology is likely not to perform too poorly. Third, the China Securities Regulatory Commission once again emphasized "sparing no effort to maintain the stable operation of the capital market," with financial security and safeguarding against financial risks being important bottom lines. However, it should also be noted that incremental funds in the market are currently insufficient, and combined with the demand from some short-duration assessment funds to reduce risk exposure at year-end, this will also make market pricing at this stage more complex.

In terms of direction, attention can be paid to sectors such as technology and materials, strategic resources, and high dividends. (1) Emerging technology: 2026H2-2027 will be a period of accelerated investment in domestic computing power, and we are optimistic about domestic lines related to self-controllability; for overseas chains, focus on segments with rising value contribution. Attention can be paid to domestic chips/semiconductor components and materials/communication equipment/mechanical equipment, etc. (2) Strategic resources: U.S. Treasuries are no longer necessarily risk-free assets, and under a complex international situation, the demand for resource security is increasing. Geopolitical conflicts and AI construction needs will also tighten supply and demand for bulk commodities. Attention can be paid to precious metals/industrial metals/rare metals/petrochemicals/agricultural products, etc. (3) Finance and high dividends: The demand for portfolio stability is increasing, and at the same time, new insurance fund regulations are boosting the willingness to allocate to dividend assets. Attention can be paid to banks/brokerages/power utilities/telecom operators, etc.

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