Core Viewpoint - The technology sector in China is experiencing unprecedented investment appeal and development potential due to continuous innovation and an improving policy environment [1] Group 1: Key Variables Driving Technology Narrative - Three key variables are identified as driving the deepening of the "technology narrative": 1. Continuous enhancement of China's technological capabilities with significant breakthroughs in areas such as domestic models, computing power, and advanced semiconductor processes [2] 2. Ongoing domestic policy support for the technology sector, including guidance for technological innovation and financing for tech companies [2] 3. Continuous improvement in talent pool, including the maturation of AI algorithm personnel and the engineer dividend accompanying generational technological advancements [2] Group 2: Market Dynamics and Investment Opportunities - Despite solid fundamentals in the technology sector, there has been significant divergence in individual stock performance. Short-term fluctuations should not overly concern investors, as the fundamentals and industry development remain resilient [2] - The market is currently experiencing adjustments due to year-end switching and performance gaps, but this does not affect the long-term investment value in technology [2] Group 3: Identifying New Opportunities Amidst Volatility - To uncover "high-low switching" opportunities in the technology sector, two considerations are emphasized: 1. Analyzing structural differentiation in the industry to enhance investment success rates, focusing on low-priced assets in conjunction with industry changes [4] 2. Evaluating market expectations to identify discrepancies in industry forecasts, with a focus on AI and the rise of Chinese technology, particularly in computing power and storage [4] Group 4: Investment Strategy and Research Framework - The investment strategy in the technology sector should be characterized by high volatility and rapid iteration. A combination of top-down and bottom-up approaches is recommended to capture industry development opportunities [5] - Key factors for stock selection include market space, competitive landscape, business model, management, growth potential, and market expectations [5] - A comprehensive research training system, "3+3+3," is established to enhance research capabilities and investment management efficiency within the company [6] Group 5: Asset Allocation and Product Selection - Investors are advised to assess expected returns and risk tolerance, as the technology sector is inherently high-volatility. Balancing risk and return is crucial [7] - Emphasis is placed on understanding industry changes to improve investment success rates, with a recommendation to consider low-volatility assets for portfolio balance [7] - For product selection, investors should evaluate major holdings, changes, fund manager experience and style, and quarterly reports to align with personal risk-return profiles and industry knowledge [7]