Market Overview - The A-share market experienced a significant decline on September 4, with major indices dropping collectively. The Shanghai Composite Index fell by 1.25% to 3765.88 points, the Shenzhen Component Index dropped by 2.83% to 12118.7 points, and the ChiNext Index decreased by 4.25% to 2776.25 points. The STAR 50 Index saw a decline of over 6% [2]. Market Correction - The recent downturn is characterized as a normal short-term technical correction, with an expected decline of less than 10% and a brief duration. The primary reason for this correction is attributed to the rapid increase in the market, which rose over 700 points from 3200 to nearly 3900 points [4][5]. - The market's previous surge led to a significant accumulation of profit-taking positions, particularly in popular stocks, which contributed to the current sell-off [5][6]. Investor Sentiment - The market's rapid rise created an environment of heightened investor enthusiasm, leading to increased leverage and a record high margin balance of 2.3 trillion yuan. This situation also raised concerns about potential risks associated with such rapid gains [5][6]. - The current market sentiment reflects a collective expectation of a correction, resulting in panic selling across various indices [6]. Sector Analysis - The technology sector, particularly semiconductor and communication equipment stocks, is experiencing significant sell-offs due to previous speculative trading without solid earnings support. This has led to a sharp decline in stock prices as market sentiment shifts [8]. - Conversely, the photovoltaic sector is showing resilience, driven by expectations of "capacity reduction and anti-involution" policies aimed at addressing overcapacity issues and reducing competition within the industry [10]. Investment Strategy - Investors holding speculative stocks are advised to take profits during this correction and consider reallocating to more stable, undervalued blue-chip stocks. Those who are currently at a loss should remain patient and wait for the market to stabilize before making further adjustments [9]. - The photovoltaic sector's rebound is seen as a potential opportunity, although caution is advised as overall market adjustments could still impact this sector [10].