Market Overview - The Shanghai Composite Index fell by 0.73%, while the ChiNext Index dropped by 1.84%, with 4,100 stocks declining in the market [1][3] - The trading volume in the Shanghai, Shenzhen, and Beijing markets reached 24,643 billion, an increase of 1,736 billion from the previous day, indicating active fund reallocation despite the market decline [3] Sector Performance - Energy metals and steel sectors showed resilience, with companies like Tianqi Lithium and Yongxing Materials hitting the daily limit up, while Ganfeng Lithium also saw gains [3] - Quantum technology stocks such as Guodun Quantum and Hexin Instruments experienced price increases, and steel companies like Anyang Iron & Steel and Ordos also reached the daily limit up [3] - Conversely, sectors like CPO, coal, gaming, lithography machines, and securities faced significant declines, with companies like Hezhu Intelligent and Antai Group hitting the daily limit down [3] Investment Strategy - Investors are advised not to panic sell if their holdings are fundamentally sound but have declined due to market fluctuations, as selling at this point may result in losses [4] - Caution is recommended against chasing high-performing stocks without prior positioning, particularly in lithium and steel sectors [4] - Monitoring trading volume is crucial; if the volume remains high without further index declines, it may indicate that funds are stepping in to stabilize the market [4]