Group 1 - The central political bureau meeting emphasized the need to deepen the construction of a unified national market and optimize market competition order, which is crucial for improving corporate profitability and reshaping capital market valuations [1] - The phenomenon of "involution" in industries such as steel, photovoltaic, chemicals, and new energy vehicles has led to profit losses due to blind pursuit of scale expansion, resulting in resource waste and pressure on overall profitability [1] - Early government support through policies like electricity price discounts and credit support was beneficial during the industry cultivation phase, but reliance on such policies in the mature phase can lead to disorderly competition [1] Group 2 - The A-share market shows generally low valuations for related industries, primarily due to excessive competition obscuring clear profit prospects for investors, who are waiting for industry bottoming out [2] - Policy guidance is expected to break the current situation, with orderly governance underpinned by policy likely to shorten the adjustment process, accelerating the timeline for corporate profit recovery and valuation rationalization [2] - Traditional industries like steel and cement have entered a mature phase with stable profitability, while emerging sectors like photovoltaic and new energy equipment, despite being in a growth phase, may release greater capital appreciation potential following optimization of competition order [2]