A-shares showcased a textbook-level extreme divergence today. After a sluggish opening, the market briefly rebounded but soon weakened again, with the ChiNext Index falling more than 1%, and nearly 3,700 stocks in the red. However, trading volume remained hot—reaching 1.9 trillion yuan in half a day, indicating that capital battles have long entered a heated state.

The most eye-catching development was the complete collapse of previously popular sectors. The commercial aerospace sector was heavily hit, with China Satellite and Aerospace Electronics hitting the daily limit down, mainly due to overhyped speculation earlier. Market regulators are gradually guiding the market, and the bubble of false concepts is being squeezed out one by one. The heat around AI applications has also noticeably cooled, with Worthbuy and Shenguang Group hitting the limit down, prompting a large amount of profit-taking capital to flee.

But the key point here is: capital has not left the market; it is just moving elsewhere. The precious metals sector, riding the wave of geopolitical tensions, saw Sichuan Gold directly hit the daily limit up, as the company is consolidating its long-term competitiveness through resource expansion. The non-ferrous metals and lithium battery sectors are also not quiet. Zinc Industry and Luoping Zinc Electric hit the limit up, the former driven by rising metal prices, and the latter rebounding as mine resumption and restart efforts bottomed out.

This switch indicates a phenomenon: during market volatility, capital is migrating to sectors with substantial logical support. Adjustments in popular sectors are inevitable; the key is whether investors can find the next place for capital to gather.