Core Insights - The report indicates that the recent short-term adjustment in the A-share market is due to a combination of factors, including a rapid rise in the market since late June and the need for market expectations to be re-anchored, leading to a potential impulse adjustment [1] - Despite the short-term adjustments, the report maintains an optimistic outlook, suggesting that high-growth sectors will continue to increase over time, with significant improvements expected in the midstream manufacturing sector around mid-2026 [1] - The report anticipates that 2026 may witness the first effective rebound in profitability and double-digit growth in net profit for the past five years across the A-share market, driven by structural improvements in fundamentals [1] Market Trends - The report highlights that the channel for residents to increase equity allocation will become smoother over time, with public funds issued in 2020-21 nearing their net asset value [1] - Although the broad market indices are currently adjusting, nearly half of the stocks are still rising, indicating a maintained profit-making effect, which is beneficial for institutional net value returns [1] - The report suggests that the market's slowdown could lead to increased clues about economic recovery and enhanced market elasticity, forming a solid foundation for sustained market growth [1] Structural Selection - The report emphasizes that the potential mainline structures for future investments are domestic technological advancements and advanced manufacturing, which are expected to yield high returns, although key catalysts are still awaited [1] - Key economic indicators to watch in September and October include the ongoing demand for computing power and the progress of Tesla's Optimus product, as well as potential demand highlights in certain cyclical products [1] - The report notes that the Hong Kong stock market currently offers better value than the A-share market, reflecting a more optimistic economic trend with fewer bullish expectations [1]