CSC Financial: Prioritize defense, wait for a turning point.

CSC Financial released a research report noting that the post-holiday A-share market performed below expectations, with the technology sector becoming the center of the correction. In the short term, it was directly hit by FCC restrictions on optical modules and OpenAI's revenue falling short of expectations; the fundamental reason is that A-shares are in the second wave of leverage structure adjustment, compounded by overseas liquidity tightening and Middle East geopolitical disruptions, keeping risk appetite under continuous pressure. However, positive signals have begun to accumulate: overseas geopolitical tensions are easing, domestic market stabilization mechanisms are in place, and the technology sector's earnings remain robust. If macro disturbances ease and third-quarter earnings are verified, market expectations are expected to reverse. In terms of allocation, defense comes first, with dividend assets as the base position; for growth-oriented directions, focus on laying out AI computing power, chemical resource products, and other profit-improving segments around third-quarter earnings, as well as the new energy sector under the logic of European energy security.