GF Strategy: After the rapid pullback of AI assets in July, there is likely considerable room for correction going forward.

TechFlow news, August 02, GF Securities' strategy research report pointed out that "single top" is a market exception; A-share broad-based indices only saw it in 2015, the Dow Jones and S&P 500 have never seen it, and the Nasdaq only saw it in 2000. A single top may occur in two situations: first, an irreversible shock on the funding side (deleveraging); second, a rapid reversal of the earnings cycle (one-time earnings or strong cycle). In the current A-share bull market, AI assets are not under either of these shock environments; therefore, even in the worst case, there will be repeated multiple tops. In other words, after the rapid pullback in July, there is likely considerable room for correction subsequently. (Jin10)