Summary: ①Yesterday's market continued to consolidate with low volume, individual stocks saw a recovery but the hotspots were still scattered; ②Huawei's Xuanji Perception System was officially released, and the smart clothing business is expected to further develop; ③With the successful 10 consecutive limit-up of Shenzhen Huaqiang, pay attention to the opportunity for low-level recovery in the Huawei chain.

Yesterday, the market remained volatile with differentiation as the main theme. At the index level, the adjustment continued, and bank stocks experienced some correction after continuous gains. In addition, the weakness in the baijiu sector weighed on the index. At the individual stock level, there was some degree of recovery, with more than 3,400 stocks in the green. However, the lack of continuity in the hotspots is still a problem, and the strongest housing inspection concept from the previous day experienced a collective sell-off, causing the sector effect in the market to decline. Often, after a partial symbol in a certain theme has a partial abnormality, it becomes lackluster. Therefore, it is still necessary to pay attention to the direction that can form a collective force in the market.

From the perspective of short-term themes, the Huawei industry chain is still worth continuous tracking. In terms of news, the Huawei "Xuanji Perception System" was officially released, which can judge users' emotional status through heart rate and so on. Smart clothing products equipped with this system will be released in September. According to analysis, Huawei's Xuanji Perception System will greatly enhance the performance of Huawei's existing smart clothing, and may empower smartwatches, similar to how Huawei empowers new energy vehicles with its smart driving technology, opening a new era for smart clothing. In addition, there is also the possibility of the release of Huawei's three-fold folding screen and Honor's folding screen Magic V3 in September, which may open up a larger market space for foldable devices. With the positive catalysts mentioned above, there is room for further development of smart clothing and foldable screens in the future.

From the perspective of the market, Shenzhen Huaqiang successfully achieved 10 consecutive limit-ups yesterday, but due to the repeated speculation of Huawei Hisilicon, the overall position level is relatively high. More funds are choosing to flow back into the consumer electronics sector, including the foldable screen concept stock Kunshan Kersen Science & Technology, the AI glasses concept stock Yingtong Telecommunication, and the AI ring concept stock Guangdong Transtek Medical Electronics, all in limit-up. It can be seen that funds adhere to the principle of speculating on new stocks rather than old ones, and in the future, it is important to pay attention to some opportunities for low-level recovery in the Huawei chain.

Overall, as August approaches its end and the disclosure of semi-annual reports by listed companies is coming to an end, after the concentrated clearance of performance risks, the market as a whole may have the opportunity for a reversal, focusing on themes that resonate with the index.