CICC review: This round of tech plunge is essentially emotional release under high crowding

English summary

### CICC review: This round of tech plunge is essentially emotional release under high crowding Time: 2026-07-29 18:12:38 Content: Recently, the tech track has seen an epic correction, and many people have suffered heavy losses. This decline deserves a thorough review. Looking back, half a month ago the market was still full of optimistic narratives about AI's high prosperity, and in a short time the tide completely reversed. External triggers of the decline include rumors of Meta's computing power sales, the negative spiral of Korean stock market deleveraging, and overseas liquidity concerns, but the core internal cause is simple: previous gains were too fast, and funds were overly crowded. The technology sector's turnover once accounted for nearly half of the entire market, with valuation, chips, and turnover all at high levels. The market is extremely fragile, and even a small negative factor can easily trigger profit-taking and leverage stampedes, amplifying volatility infinitely. Qualitatively speaking: this adjustment is more of a clearing of capital crowding, and the long-term industry logic of AI has not completely reversed. Computing power demand, industrial capital investment, and commercialization processes are still advancing. Short-term panic selling, on the contrary, creates a healthier starting point over a longer horizon. ...