Dongwu Securities: The market is gaining momentum at the bottom, and a new round of market conditions will gradually unfold.

According to a research report by Dongwu Securities, after experiencing a style adjustment in July, the short-term rebalancing of A-share styles is essentially driven by a correction in the funding environment, influenced by both internal trading crowding and external market linkage, rather than a disproof of industrial trends. Observing the current market state from four dimensions: market volatility, stock price positioning, crowding degree, and financing, the market has already entered a phase of reduced volatility and bottom-fishing. The upcoming August earnings season will be a key turning point, with the AI sector likely to strengthen again. Additionally, other prosperity clues are worth noting: innovative drugs/CXO, with performance, policy, and other factors resonating to sustain continued upward revisions; power equipment, where segments like the power grid and power supply possess overseas advantages; and non-ferrous metals, with renewed expectations of interest rate cuts leading to a recovery in gold and copper prices.