Global technology stocks are falling in resonance. Institutions stated that they will actively allocate to growth sectors in the medium term.

Global technology stocks resonated and fell. After a sharp drop in US tech stocks on June 5, on June 8, the Nikkei 225 index fell nearly 4%, and the Korean composite index fell over 8%. The A-share market adjusted, with the major tech stocks leading the three major indices to fall, with the Shenzhen Component Index and the ChiNext Index both falling by over 3%. Sectors such as banking, auto parts, and poultry industry rose against the trend, with over 4500 stocks in the entire A-share market falling. The market turnover was 2.82 trillion yuan, lower than the previous trading day. In terms of funds, leveraged funds saw net selling after 8 consecutive weeks of net buying, with the A-share margin balance decreasing by over 5 billion yuan last week, with net selling in the electric equipment and electronic industries both exceeding 3 billion yuan. On June 8, the net outflow of main funds from the Shanghai and Shenzhen markets exceeded 75 billion yuan, with a cautious sentiment in the market. Analysts believe that in the short term, A-shares are still in a phase of volatile digestion and structural rebalancing, with sector rotation accelerating and short-term market fluctuations potentially increasing. In the medium term, supported by fundamentals and industry trends, the market is expected to gradually move up in a volatile manner. In the short term, attention should be paid to defensive sectors, while in the medium term, active allocation to growth sectors is recommended.