Hexun Investment Advisor Zhong Kaifeng: Opening low and declining further is very uncomfortable. What should we do?

The harder the time, the more you need to stay calm; don’t let emotions get the better of you. The index isn’t that bearish. First, look at the Asian market picture: the Korean stock market is down nearly 4%, the Nikkei is down 2%, Hong Kong is down 1%, and with all Asian markets falling, the Shanghai Composite Index is only down 20 points, a decline of about 0.53%. The domestic pullback is much milder than in other countries, which shows the main force is still actively maintaining the market, not a waterfall-style selloff. Although the index has adjusted, the nature of the adjustment is one with resistance; the main force has not given up.

Second, the industry landscape isn’t completely bleak, and there are still opportunities to make money. Even though sectors like semiconductors, software, non-ferrous metals, and power equipment have been performing poorly, some directions are very strong. For example, the medical innovation drugs track, which has been continuously favored recently, is today seeing many stocks withstand early-session selling pressure, and they even hit new intraday highs—worth focusing on. The mid-term logic for pharma is that the continuous six-month down cycle has ended; the main force holds relatively fewer pharma chips, while earnings are now being released. In the past three months, innovation drug BD authorization deals signed between China and overseas have exceeded 60 billion USD. Last year’s full-year figure was 130 billion USD; this year, in just one quarter, it has already reached 60 billion USD. Full-year innovation drug earnings are expected to grow substantially—this is the logic behind its rise against the trend. In addition, the communication sector hasn’t been weak today either; some individual stocks have also hit new highs. Its logic is likewise earnings: the communication sub-sectors are in a price-increase cycle, the global AI trend hasn’t ended, and computing power remains scarce—this direction can be explored repeatedly. The industry isn’t a single dark mass; it’s about structural opportunities, and choosing the right sector is crucial.

Finally, let’s talk about investment response. Many friends haven’t been able to make money with trading recently, mainly because their expectations for the index or individual stocks are too high. The problem is that after three bullish candles rise, many don’t sell. For many stocks, three bullish candles are basically the limit—if you don’t sell, they will likely pull back and could swallow up all the gains. Therefore, in the current difficult situation, if it has risen for three days, don’t chase; you should consider taking profits. But if it has fallen for three days, for the directions you especially favor, don’t be pessimistic—instead, watch to see whether there’s a chance for value buying. At this stage, it’s normal for the index to move with small down and up days. Don’t expect a big rally from the index in the coming month. However, the sectors that should run in the main uptrend will continue to do so, and the directions that should be value-bought should still be searched for value-buying opportunities. The industry is the top priority—make absolutely sure you don’t choose the wrong direction.

（责任编辑：Zhang Yan ）

     【Disclaimer】This article only represents the author’s personal views and is not related to Hexun. The Hexun website remains neutral toward the statements and judgment in the text, and does not provide any explicit or implicit guarantee regarding the accuracy, reliability, or completeness of the content. Readers are for reference only, and should bear all responsibility themselves. Email: news_center@staff.hexun.com

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