Group 1 - The sudden drop in the Beijing Stock Exchange (BSE) stocks, with the BSE 50 index falling nearly 6%, is attributed to overcrowding in micro-cap stocks and significant overbought signals in the market [1][2] - The trading volume of the CSI 2000 has exceeded the high point from March, indicating a potential correction in the market [2] - The liquidity situation shows a contraction in net inflows for margin trading and a significant outflow from equity ETFs, leading to a shrinking demand side [2] Group 2 - The U.S. fiscal deficit is projected at 6.1% for this year, corresponding to approximately $2 trillion, with warnings from Treasury Secretary Yellen about the depletion of government cash and unconventional measures by August [2][3] - The global financial system is facing increased uncertainty due to the U.S. fiscal crisis and rising U.S. debt rates, prompting a shift towards "safe assets" [3] - The Japanese long-term interest rates have risen due to comments from Prime Minister Kishida, which may impact global market risk appetite, although the Bank of Japan may intervene if rates continue to rise significantly [3] Group 3 - A-shares have maintained a volatile trend since the second week of May, with a significant number of stocks declining, yet the Shanghai Composite Index remains strong [4] - Long-term expectations for quality assets in A-shares remain positive, with Morgan Stanley's target for the MSCI China Index set at 80 in a basic scenario and 89 in an optimistic scenario [4] - The Chinese economy's recovery is expected to rely on consumption and investment, with policy support needed to boost consumer spending [5]