CITIC Construction Investment: In August, the industry allocation should adopt a "defensive bottom position + supply constraints driving price increases + core technology repair" barbell structure.

In July, the market underwent a sharp shift from high-growth to low-valuation value, but the adjustment in the technology sector is more attributable to the loosening of chips and deleveraging, rather than indicating a comprehensive reversal in AI industry trends. In terms of allocation, priority should be given to shipbuilding and non-ferrous metals sectors, which are mutually confirmed by prosperity, supply and demand, and pricing. AI hardware can be adjusted from underweight to neutral, focusing on high-certainty areas such as optical modules and AI servers, while waiting to gradually increase positions after mid-term report orders, cash flow, and stock prices stabilize. It is not advisable to chase high in the strong sectors of coal, oil and petrochemicals, and food and beverages from July; instead, one should selectively choose upstream resources and quality leading consumer stocks.