Zhi Tong Cai Jing·2025-08-04 01:00Core Viewpoint - The recent adjustment in A-shares is a result of profit-taking pressure and changes in expectations after a period of continuous gains, leading to a cooling of market sentiment, which is expected to stabilize and support a slow bull market in the long run [1] Group 1: Market Conditions - The current environment of global monetary easing and ample liquidity in A-shares remains unchanged, supporting investor bullish expectations and structural prosperity in new sectors [2][3] - The political bureau meeting emphasized maintaining liquidity and promoting a decline in comprehensive financing costs, which will continue to support the equity market [2] Group 2: Policy and Economic Outlook - There is a cooling expectation regarding incremental policies and pro-cyclical measures, as the July Politburo meeting did not deploy new policies but focused on detailed macroeconomic efforts [2] - The uncertainty regarding the Federal Reserve's interest rate cut schedule has increased, with market expectations for a rate cut in September dropping from 63% to 38% after the July non-farm payroll data, before rising to 80% following the data release [2] Group 3: Sector Focus - Key sectors to watch include semiconductors, AI applications, humanoid robots, innovative pharmaceuticals, non-ferrous metals, defense and military industry, transportation, and non-bank financials [1] - The structural prosperity in new sectors remains unchanged, with positive performance forecasts in industries such as non-bank financials, non-ferrous metals, electronics, and agriculture as of August 1 [3]