Great Wall Securities: There is a possibility of "passive" overselling in the short term A-share market, but the fundamentals of core industries still provide support.

Datong Securities strategy analyst Jing Jianwen released the latest strategy viewpoint on July 22, saying that one of the main reasons for dragging down A-shares recently is the intense volatility in the external environment. On one hand, the poor US inflation data and repeated expectations of Fed tightening; on the other hand, the escalation of the US-Iran conflict has once again heated up, continuously increasing the unpredictability of war expectations. Coupled with the high-level pullback of major overseas stock indices, it has triggered short-term capital flight, causing global capital markets to fall simultaneously. Jing Jianwen stated that the domestic economic fundamentals have not shown synchronous deterioration, with export resilience and the trend of internal demand recovery remaining stable. Therefore, A-shares play more of a "passive decline" role in this round of adjustment, rather than being influenced by the deterioration of its own economic situation. Jing Jianwen stated that from a structural perspective, the fundamentals of the technology growth track still have strong support, although the overall technology growth track is under pressure, the performance is strong. Over 60% of the stocks with mid-year report that showed an increase in profit in the subsectors such as semiconductor equipment, AI computing hardware, etc., indicating that the domestic substitution and industrial upgrading logic have not been disrupted. Leading companies continue to maintain high growth in contract liabilities and research and development investment, showing that the industrial trend has not reversed. The current pullback is more of a disturbance in the capital market rather than a fundamental falsification.