Last night, a sudden European stock market crash caused some chaos in the global markets. The STOXX 50 index plummeted by 1.72%, with Germany, France, and Italy falling by 1.34%, 1.78%, and 1.32% respectively. Denmark was even harder hit, dropping by 2.73%. Since the US markets were closed for the holiday, Europe bore the brunt alone, and the risk aversion sentiment spread instantly.

The Asia-Pacific region followed suit. Japan's stock market opened lower and never recovered, with a decline firmly stuck at 1%; South Korea barely bottomed out and rebounded slightly thanks to the storage chip sector; Australia also fell by 0.6%; the A50 futures have been declining for six consecutive days, although the decline narrowed to around 0.5%, the momentum remains weak.

Meanwhile, the Chinese A-shares and Hong Kong stocks were also startled in the early trading session. The Hang Seng Index once plunged, approaching a 0.74% drop; the Shanghai Composite Index fell as much as 0.82%. However, both markets held firm and gradually recovered by midday, with the Shanghai index stabilizing around 4101 points. Why can they hold up? State-owned enterprises with heavy weightings are supporting the market—low-valuation core assets are playing the role of a stabilizer.

But here’s an interesting contrast: during the heavy support from large-cap stocks, the previously soaring tech stocks became the outlet for panic selling. In sectors like AI applications and chips, many stocks were sold off in a panic. By midday, the Shenzhen Component Index and the STAR 50 both fell by 1.22%, and the ChiNext Index was even worse, dropping by 1.83%. The combined trading volume across the two markets in the morning was 1.85 trillion yuan, an increase of 568 billion yuan compared to Monday, indicating clear signs of capital divergence.

What is the essence of this correction? Excessive gains earlier, combined with moderate market cooling, with US-European trade friction just serving as an excuse. There are no substantial negative fundamentals domestically; the medium-term upward trend of the market remains intact. From a technical perspective, this is not a reversal but a shakeout. The key point is that in the afternoon, the Ministry of Finance will hold a press conference, and positive policy signals are expected to give the market another boost.

From an investment perspective, the industry logic behind the AI application theme is still ongoing, and this pullback is precisely a good opportunity for low-cost entry. Whether in terms of time or space, the spring market is far from over; short-term adjustments are just a chance to reorganize holdings. Key targets near support levels are worth paying attention to.