The market style has switched dramatically, and funds face a "test" in portfolio adjustments.

Since July, the A-share market has experienced a dramatic shift in style. The technology growth sectors, such as AI and semiconductors, which had previously led the market, have seen significant adjustments, while the traditional value sectors, which had performed poorly, have generally rebounded. Against this backdrop, several funds heavily invested in AI and semiconductors have encountered considerable pullbacks. Notably, among the funds that have faced sharp declines, some had just completed large-scale portfolio adjustments in the second quarter, switching from traditional sectors like consumer goods and resources to the technology sector. This includes instances where changes in fund managers resulted in alterations in investment style, as well as cases where fund managers proactively chose to "chase trends" amidst the diverging market conditions.