Market Overview - The A-share market experienced a shift from rising to falling after the holiday, with the Shanghai Composite Index dropping nearly 1% and falling below 3900 points [1] - The trading volume in the Shanghai and Shenzhen markets was 2.52 trillion, a decrease of 137.6 billion from the previous trading day [1] - Sector performance was mixed, with construction materials, coal, and textiles leading in gains, while electronics, power equipment, computers, and non-ferrous metals saw significant declines [1] Macro Analysis - The impact of recent Sino-U.S. trade tensions on the market is expected to be weaker than in April, due to more precise and effective countermeasures from China, including actions related to rare earths and lithium batteries [2][3] - Previous trade negotiations have yielded some results, and recent technological advancements in China's semiconductor and emerging tech sectors strengthen its negotiating position [2] - Economic data from the U.S. is showing signs of marginal deterioration, while China's economic structure is showing positive changes, with improved profit margins for industrial enterprises and stabilization in PPI year-on-year data [2][3] Investment Strategy - The focus remains on technology growth as a core investment theme, with potential short-term trading opportunities in rare earths and precious metals [4][5] - The upcoming political meetings and policy announcements in October are expected to provide favorable conditions for investment, despite potential short-term market fluctuations [4] - Long-term prospects for the stock market are optimistic, supported by declining risk-free interest rates, improved liquidity, and better earnings expectations [4][5] Sector Focus - The acceleration of AI innovation and domestic production is expected to lead to a new capital expenditure cycle, particularly in sectors like internet, electronic semiconductors, defense, and robotics [5] - The financial sector, after adjustments, is showing improved dividend returns and stable value, with attention on brokerage and insurance stocks [5] - The shift in economic governance is likely to correct previously overvalued deflation expectations, making cyclical commodities like non-ferrous metals, chemicals, steel, and new energy more attractive [6]