The A-share market shows a shrinking volume adjustment pattern, with the Shanghai Index experiencing fluctuating declines. The support from the 5-day moving average is weak, and the 10-day moving average is likely to face downward pressure. Market enthusiasm has significantly cooled, trading volume has sharply contracted, and the short-term downward trend may continue. It is recommended to maintain a low position and wait for stabilization before gradually increasing positions in batches.

In the Asia-Pacific markets, the overall trend is predominantly negative with more declines than gains. The Nikkei Index dipped slightly by 0.4%, while South Korea's stock market defied the trend, rising 1.5% and hitting a new historical high; the Hong Kong market rebounded after a bottoming out, with the Hang Seng Index slightly down 0.22% and the Hang Seng Tech Index declining further to 1.2%. From a valuation perspective, Hong Kong stocks are currently in a notably low range, with corrections largely completed, leaving greater upside potential ahead.

Combined trading volume for both markets reached 2.91 trillion yuan, a reduction of 1 trillion yuan from the previous trading day, indicating a clear decline in market activity. On the individual stock level, more stocks declined than rose, with over 2,200 stocks rising and over 2,800 stocks falling. Based on volume patterns, when the combined trading volume drops to the 2 trillion yuan level, a阶段性 bottom signal may emerge. Investors should remain patient and wait for market stabilization.

Sector performance shows clear divergence. Sectors that have seen significant gains previously—such as commercial aerospace, satellites, artificial intelligence, and communication equipment—still face potential downward pressure in the short term and should not be blindly bottom-fished. Conversely, underperforming sectors such as software, pharmaceuticals, securities, insurance, and elderly care, along with relatively strong performers like rare metals, rare earths, photolithography machines, and new energy, may be worth watching during pullbacks.

Overall, the market's short-term cooling is evident, and a significant rebound is unlikely. The Shanghai Index is expected to remain in a range-bound consolidation between the 10-day and 20-day moving averages. Strategy-wise, investors should avoid recently high-performing stocks to prevent risks from high-level corrections; instead, focus on low-level sectors that are just starting to rise and capitalize on their catch-up opportunities.