Semiconductor Rally Over or Just a Mid-Course Correction? Morgan Stanley Shanghai Stock Exchange STAR Market Next-Gen Information Technology

From July 1 to 2, the A-share STAR Market Information Technology Index fell sharply for two consecutive days, with a cumulative decline of over 10%, triggered by external sentiment spillover and profit-taking after earlier excessive gains. Meta's announcement of its entry into the cloud computing market sparked concerns of "overcapacity in computing power," with the sentiment spilling over to A-shares. At the industry level, AI computing power demand continues to be released, and the logic of domestic substitution continues to strengthen. Silan Technology's IPO has been accepted for review.