Di Yi Cai Jing Zi Xun·2025-10-12 11:08Core Viewpoint - The recent volatility in the US stock market, particularly in technology stocks, has raised concerns among investors, but there is optimism regarding the resilience of the A-share market in China despite external pressures [2][3][4]. Group 1: Market Performance - The Nasdaq Composite Index fell by 3.56% and the S&P 500 Index dropped by 2.71%, marking the largest single-day declines since April [2]. - Major US tech companies, including Apple, Microsoft, and Nvidia, collectively lost $1.65 trillion in market value overnight [2]. - The FTSE China A50 Index also experienced a significant drop of 4.26%, the largest single-day decline since April 7 [3]. Group 2: Investor Sentiment - Despite the recent downturn, there is a prevailing belief that the A-share market can recover quickly, with expectations of a potential "V" shaped recovery [4][5]. - Investors are encouraged to identify undervalued stocks that may benefit from policies promoting "self-reliance" and "new productive forces" [3][4]. Group 3: External Factors - The recent escalation in US-China trade tensions, particularly regarding rare earth controls, is seen as a catalyst for increased market volatility, but experts believe the market is better prepared than in previous instances [4][5]. - The current market environment is characterized by high valuations, with 18% of stocks exceeding the 95th percentile of historical valuations as of October 10 [5]. Group 4: Technology Sector Outlook - The semiconductor industry has been notably affected, with the Philadelphia Semiconductor Index dropping by 6.32% [6]. - Despite short-term fluctuations, the long-term growth trajectory of technology stocks remains intact, driven by strong fundamentals and policy support [6][7]. - Companies like Allwinner Technology and Changchuan Technology are reporting significant profit growth, with Allwinner expecting a net profit increase of 72.20% to 92.06% year-on-year [7].