CICC Wealth Analysis: Three Major Changes in Short term Market Fluctuations

CICC Wealth believes that short-term market fluctuations are actively cooling down, and points out that the crowded technology track, index restructuring, and high levels of leveraged funds are the three major changes in the current market. The valuation of semiconductors, communication equipment, components, consumer electronics, optical optoelectronics, and electricity is at a relatively high level in the past decade, and the transaction volume of semiconductors and communication equipment accounts for more than 40% of the entire market. The adjustment of index components has led to a significant increase in technology equity, and the volatility of technology stocks has affected the index. As of June 5th, the total market financing balance was 2.89 trillion yuan, and the financing balance of semiconductors, communication equipment, securities, and batteries was nearly 700 billion yuan, accounting for over 20%.