Market Performance - The A-share market experienced a significant decline, with the Shanghai Composite Index dropping by 2.45%, the Shenzhen Component Index falling by 3.41%, and the ChiNext Index decreasing by 4.02% as of the close on November 21 [1] - The total market turnover reached 1.98 trillion yuan, an increase of 260.96 billion yuan compared to the previous trading day [1] Market Influences - The market adjustment was influenced by several factors, including the Federal Reserve's hawkish signals, which reinforced expectations for prolonged high interest rates, leading to increased uncertainty in the global liquidity environment [3] - The lack of clear incremental funding sources as the year-end approaches has resulted in a defensive stance among institutional investors, with limited willingness for new capital to enter the market [5] - A significant change in the exchange rate environment, with a strengthening dollar, has weakened the external conditions that previously supported the A-share market [5] Market Structure - The recent market pullback reflects a consolidation phase following substantial gains in certain sectors, with high-weight sectors entering a correction phase [7] - The overall A-share index only retreated by 1.87%, supported by the performance of smaller weight sectors, which have low volatility and value-oriented characteristics [7] Volatility and Sentiment - The VIX index, an important indicator of market sentiment, has risen significantly due to the stock market decline, indicating a shift towards risk aversion among investors [8] - The market is expected to remain in a phase of emotional repair and volatility digestion, with potential opportunities arising as fear subsides and volatility decreases [10] Future Outlook - If the Federal Reserve's stance becomes more dovish and the liquidity situation improves, market sentiment may gradually recover, providing a more favorable entry point for mid-term investments [11] - The current market pullback is viewed as a rebalancing of structural contradictions rather than a fundamental trend reversal, suggesting that investors should focus on balanced large-cap indices and defensive dividend products for mid-term opportunities [13]