The semiconductor and new energy battery sectors continued their decline from yesterday, opening significantly lower and dragging down the three major indices. Although large financial sectors such as insurance, brokerage, and banks attempted to stabilize the market, the scattered hotspots had limited appeal, and ultimately, the market collapsed under the massive sell-off in the big tech sector. The ChiNext and STAR Market saw declines of nearly 5%, with the main index closing at a near low point. Yesterday, the Ministry of Commerce and the General Administration of Customs announced export controls on lithium batteries and related materials, leading to a significant drop in the battery and new energy sectors today, especially for the largest weight stock in the ChiNext, CATL, which fell over 10% from yesterday’s high! The main culprit behind the sharp decline in the semiconductor chip sector was the notice released by several brokerages yesterday, adjusting the margin financing ratio for nine stocks, including SMIC and BAW Storage, to 0, causing SMIC to open significantly lower again today! Its stock price fell as much as 20% from yesterday’s high! This dragged down the STAR Market index sharply! The factors that triggered the sharp declines in stocks like CATL and SMIC were merely catalysts; the most important reason was the recent surge, leading to excessive profit-taking. As soon as there was any disturbance, investors rushed to cash in their profits! However, the fundamentals of these quality stocks have not changed, so this is just a normal correction, typical of a bull market! It is hard to buy a bull’s return! Once the adjustment reaches the moving average level, aggressive investors may buy individual stocks, while conservative investors may opt for related broad-based ETFs. This is just my personal opinion for reference; please do not blame me for any inaccuracies!