Kaiyuan Securities says markets underwent a correction this week: tech staged a
strong rebound on Thursday but fell again on Friday, boosting volatility. The
broker views the pullback not as the end of the tech trend but as a concentrated
short-term risk release amid high growth, high valuations and crowded
positioning; the market is digesting valuations and crowding. Looking ahead,
technology remains the primary theme and the adjustment is seen as a reset for a
healthier relaunch. Tech is still deemed the most attractive sector with
marginally improving fundamentals; the STAR Market and ChiNext retain higher
relative earnings advantages. After the current phase of rebalancing, the market
will hunt for the next cohort that can absorb risk appetite while showing
marginal fundamental improvement — a further tech re‑selection.
