High-end technology is under heavy profit-taking pressure; funds are rotating into lower-tier dividend stocks and the electricity and coal sectors, making certainty the new consensus.

A research report from BOC Securities said that market volatility has continued this week. Pressure to realize gains has increased in high-priced sectors such as technology, and funds are rebalancing between crowded high-position areas and lower-position sectors with more certainty.

On the drivers side, expectations of tighter overseas liquidity are heating up alongside oil prices staying at high levels. In addition, with the newly appointed Federal Reserve chair, Woshe, officially taking office, market expectations for rate hikes within 2026 have clearly intensified, leading to a tightening of global liquidity.

At the industry level, the summer peak in electricity usage catalyzes the power sector. Coal supply contraction pushes prices higher. Against a backdrop of market fluctuation and relatively weak fundamentals, funds are more inclined toward companies with certain dividend returns and a low-level “margin of safety.”