Market Environment - Nasdaq's IPO underpricing is influenced by macroeconomic conditions, monetary policy, and investor risk appetite, which directly affect the funding support for new listings [2] - The Nasdaq index, while focused on tech stocks, is significantly impacted by overall market trends, including economic downturns and geopolitical conflicts, leading to a higher likelihood of IPO failures during such periods [2] Company Fundamentals - Companies listed on Nasdaq are primarily growth-oriented, particularly in sectors like technology, biotech, and renewable energy, but investors demand high certainty in short-term profitability and long-term competitiveness [2] - Basic flaws in a company's fundamentals can easily trigger IPO underpricing, especially if there are significant slowdowns in revenue growth or widening losses [2] Valuation Dynamics - The core issue of IPO underpricing often lies in the conflict between high valuations in the primary market and rational pricing in the secondary market [2] - Companies that have inflated valuations due to prior funding rounds may face significant challenges in the public market if they do not adjust their expectations before the IPO [4] Issuance Mechanism - The IPO pricing mechanism, typically determined by investment banks through book building, can amplify the risk of underpricing if the pricing deviates from market realities [2] - The "anchor effect" from recent comparable company valuations may fail if there are sudden market changes, leading to mispriced IPOs [4] Long-term Perspective - IPO underpricing does not necessarily indicate a company's failure; some quality firms may rebound as market conditions improve or as their fundamentals become more apparent [3] - Companies need to demonstrate improvements in fundamentals, such as revenue growth and reduced losses, to recover from initial underpricing [4] Key Risks - Companies in competitive sectors without unique advantages may be viewed as highly replaceable, increasing the risk of underpricing [2] - Specific events, such as clinical trial failures for biotech firms or regulatory issues for tech companies, can severely impact investor confidence and lead to significant stock price drops [2]

Core Viewpoint - The recent decline in global stock markets, particularly in the U.S., reflects a structural adjustment in investor sentiment towards technology stocks and broader economic concerns, driven by policy changes and trade tensions [2][3][10]. Market Performance - The S&P 500 index fell by 2.71%, marking its largest single-day drop since May, while the Nasdaq index experienced a more significant decline of 3.56%, losing 700 points [1][2]. - The Russell 2000 index, which represents small-cap stocks, dropped by 2.99%, indicating rising concerns about financial stability [2]. Sector Analysis - Major technology companies such as Apple, Tesla, and Nvidia saw declines of 3.45%, over 5.06%, and 4.89% respectively, contributing to the overall market downturn [2]. - The decline in technology stocks has been widespread, affecting the entire industry chain from hardware manufacturing to software services, signaling a general revision of growth expectations in the tech sector [2][3]. Economic Indicators - The U.S. government shutdown has led to over 4000 federal employees being laid off, with a total of 3.4 million employees affected, potentially impacting Q4 GDP growth by 0.3 percentage points [3]. - The unemployment rate in the U.S. rose to 3.8%, highlighting vulnerabilities in the labor market [3]. Trade and Policy Impact - The escalation of trade tensions, particularly the renewed threats of tariffs against China, has increased uncertainty in global supply chains, prompting Goldman Sachs to lower its global economic growth forecast by 0.2 percentage points to 2.4% [3][4]. - The market's response to these developments has been less panicked compared to previous downturns, as indicated by the VIX index, which peaked at 22.6, significantly lower than the 35.2 peak in April [4][8]. Valuation and Market Sentiment - Current valuations are high, with the S&P 500's price-to-earnings ratio at 29.7, up 22.2% from April's low of 24.3 [6]. - The market sentiment has shifted from a focus on external liquidity to an emphasis on internal value, with a need for investors to identify opportunities driven by domestic demand and policy support [10]. Investment Strategy - The focus for investors should shift towards sectors benefiting from domestic consumption and policy support, particularly in consumer and infrastructure sectors, which have shown resilience amid the tech sell-off [3][10]. - Mid-term investment strategies should consider the recovery of global manufacturing and the potential for physical assets to benefit from increased demand [9].

Core Viewpoint - The A-share market is experiencing fluctuations, with changes in capital flow observed as of September 21, 2023, indicating potential investment opportunities in certain sectors [1] Market Overview - As of September 21, the margin balance in the Shanghai and Shenzhen markets reached 1,500.612 billion yuan, an increase of 1.959 billion yuan from the previous trading day [1] - The financing balance amounted to 1,418.016 billion yuan, rising by 1.236 billion yuan compared to the previous trading day [1] Sector Performance - Among the 28 sectors classified by Shenwan, 18 sectors saw net purchases by margin traders on September 21 [1] - The top four sectors with significant net purchases were: - Pharmaceutical and Biological: 387 million yuan - Computer: 330 million yuan - National Defense and Military Industry: 260 million yuan - Media: 230 million yuan - The total net purchase amount for these four sectors reached 1,207 million yuan [1] Future Market Outlook - Despite index adjustments, individual stocks remain active, with 27 stocks hitting the daily limit up and 14 stocks hitting the limit down [1] - The market correction is viewed as a good opportunity for investors to position themselves [1] - The medium to long-term outlook is positive, driven by improving economic conditions and expectations of reforms, which are expected to support the large financial sector [1] - Additionally, sectors such as technology and consumer goods, which previously led the market, are anticipated to rebound after valuation adjustments, benefiting from ongoing economic recovery [1]