On July 28th, China's three major A-share stock indexes opened lower collectively, with the Shanghai Composite Index falling 0.91% and the ChiNext Index dropping 3.12%. In early trading, the lithography equipment sector showed activity, while sectors such as precious metals, semiconductors, memory chips, and CPO led the declines. Changxin Technology opened 7.71% lower on its second day of listing.

Institutional Outlook on the Market

Huaxi Securities: The combination of oversold conditions and catalysts could sustain the market's upward momentum, with a focus on the mid-to-upstream links of the AI industry chain remaining the core direction. Huaxi Securities believes that looking ahead, after an excessive emotional sell-off and oversold conditions, along with the completion of Changxin's listing, a pause in US-Iran military operations, and the upcoming FOMC meeting and Chinese Politburo meeting, the combination of oversold conditions and catalysts could sustain the market's upward momentum. There is no need for further pessimism at this point. In terms of direction, the oversold condition of the industrial main line is unrelated to fundamentals but is mainly due to emotional and transactional factors. Mid-year forecasts for tech companies show strong and impressive growth in the sector, and historical rhythm patterns suggest this industrial cycle is not yet over. Therefore, focusing on the mid-to-upstream links of the AI industry chain remains the core direction, especially after the recent oversold condition, which presents an excellent entry point. The industry cycle's performance remains strong, while the economic cycle is weak, making growth-oriented industrial opportunities still dominant. The current industrial cycle is still in its second phase, characterized by a wide-ranging consolidation and oversold conditions. It is recommended to continue increasing positions around the AI industry trend, particularly in the computing power centers and supporting hardware in the mid-to-upstream links, which are the best direction. With recent significant cooling and overshooting, now is the time to be bold in positioning. Key investment lines to focus on include: The first core main line is the AI industry chain, especially the computing hardware links in the mid-to-upstream segments, which offer an entry opportunity after the recent significant adjustment. The second main line involves areas that could benefit from the spillover and catalyst effects of the AI chain, including machinery and equipment, robotics, gaming, and software.

Dongfang Securities: External uncertainties still exist, and a truly strong rebound awaits a significant increase in market volume. Dongfang Securities stated that with intensive industry policy releases, smooth clinical trials, and accelerated technology updates and iterations, brain-computer interfaces are about to enter a critical first year for technical implementation and commercial application, making them worthy of active attention. In the short term, external uncertainties still exist, and a truly strong rebound awaits a significant increase in market volume. The focus of hot sectors is likely to be concentrated on areas with dual verification from policy and performance.

Founder Securities: The market may still fluctuate in the short term, and the sustainability of a rebound requires observing volume support. Founder Securities believes that the market has moved from a panic sell-off into a phase of volatile divergence and repeated bottoming. From a longer-term perspective, the three pillars of current policy, liquidity, and industrial trends remain unchanged. The market may still fluctuate in the short term, and the sustainability of a rebound requires observing volume support. For allocation, focus on the following directions: 1. Tech growth: Buy on dips in batches, preferring three sub-sectors: semiconductor equipment, optical communications, and memory chips. 2. High-dividend stocks: Act as a ballast for the portfolio, providing stable returns during tech volatility.