Core Viewpoint - The A-share market is experiencing a downward trend characterized by pressure on technology growth stocks and active defensive sectors, with funds shifting towards undervalued defensive sectors and regional thematic concepts [1] Market Performance - A-share market opened lower and continued to decline, with the Shanghai Composite Index down 1% at 3877.2 points, Shenzhen Component down 1.99%, ChiNext down 2.37%, and the Sci-Tech 50 Index down 2.62%, indicating significant adjustments in the technology growth sector [2] - Over 4100 stocks in the market declined, while gains were concentrated in defensive sectors like banking and coal, with trading volume at 1.19 trillion yuan, indicating a shift in fund allocation [2] - The Hong Kong market also saw declines, with the Hang Seng Index down 1.61% and the Hang Seng Tech Index down 2.81%, as semiconductor, consumer electronics, and photovoltaic sectors faced collective pressure [2] Industry Hotspots and Driving Logic - Defensive sectors and regional themes led the gains, with the banking sector up 0.37% and large state-owned banks reaching historical highs, driven by low valuations and high dividend yields attracting risk-averse funds [3] - Gold stocks strengthened due to heightened geopolitical tensions and increased demand for safe-haven assets, while coal stocks saw a slight increase of 0.37% amid expectations of rising energy prices [3] - In the Hong Kong market, structural opportunities emerged with retail and airline stocks performing well, supported by positive operational data from the airline industry [3] Underperforming Sectors and Driving Logic - The technology growth sector faced collective declines, particularly in the new energy industry chain, with photovoltaic, energy storage, and charging pile indices dropping over 4% due to concerns over "anti-involution" policies and market sentiment cooling [4] - The semiconductor and consumer electronics sectors were under pressure from global semiconductor cycle adjustments and slowing demand growth for AI chips [4] - The automotive sector also faced challenges, with slowing sales growth for new energy vehicles and downward adjustments in performance expectations for component manufacturers [4] Investment Strategy Recommendations - The market is in a structural transition period characterized by "high valuation digestion and low valuation rebound," with policy expectations and industry recovery trends expected to guide future directions [5] - It is recommended to focus on three main lines for investment: identifying structural opportunities in the technology growth sector, particularly in the AI industry chain; monitoring innovative pharmaceuticals for clinical approvals and international expansion; and exploring long-term trends in military and solid-state battery sectors [5] - For cyclical and resource sectors, attention should be paid to "policy and supply-demand" dual drivers, with precious metals like gold and copper benefiting from global easing expectations and domestic infrastructure investment recovery [6]