Zhongshan Securities: After a rapid adjustment in July, the window for A-share rebound has now opened.

China Merchants Securities released its latest research report, stating that from an external perspective, Trump's strong stance against Iran has once again triggered TACO, combined with unexpectedly weak U.S. employment data that has dampened interest rate hike expectations, leading to a recovery in global risk appetite. Since 2018, the U.S. has imposed multiple restrictions on technology products from non-U.S. countries. Historically, the trading rhythm following disputes generally unfolds in three stages: "short-term risks are concentrated and released" "both sides engage in a tug-of-war, with fluctuations and bottoming out" "return to fundamental pricing." In the long term, stock prices will ultimately revert to fundamentals, and continuous profit growth is the fundamental path to digesting risk premiums. From an internal perspective, last week showed an increase in the activity of financing funds, a restoration of guarantee ratios, and marginal net inflows of leveraged funds. Meanwhile, stock ETFs turned into net outflows after market improvements, indicating a reverse switch near their inflection points. The market is transitioning from being supported by ETFs to relying on financing. Looking ahead, market sentiment is expected to gradually warm up and regain an upward trend, with increased activity in financing funds likely to continue. Overall, after the rapid adjustments in July, a rebound window for A-shares has already opened. In terms of style, recommendations include growth indices such as the ChiNext Index, STAR 50, and CSI 1000; sectors to focus on include overseas computing power, domestic computing power, and gold recovery; and for industries, a balanced layout across technology innovation + enterprises going abroad + traditional undervaluation is suggested, with a particular focus on electronics, electrical equipment, chemical pharmaceuticals, non-ferrous metals, coal, and non-bank financials.