Technology remains the long-term trend, with short-term trading overcrowding needing to be fully digested.

On June 2, the three major A-share indices all rose, and the technology sector entered a phase of recovery. Previously, technology-related sectors had accumulated significant gains, but were affected by profit-taking and crowding out in the short term, causing the ChiNext 50 and the CSI TMT Industry Theme Index to quickly retreat. Hot sectors such as computing power and semiconductors saw significant declines, and the adjustment spread from core sectors to the entire industry chain. Analysts believe that this round of decline is only a digestion of the stage market, not a reversal of the trend of technology growth, as the sector is undergoing structural adjustment. Funds are gradually withdrawing from overvalued assets and moving towards high-potential sectors such as energy storage and robotics. Several securities firms have updated their monthly allocation strategies, focusing on technology sub-sectors with industrial catalysts and clear profit expectations.