Yesterday, the A-share market showed significant divergence. The SSE 50 Index led the gains, while small and mid-cap indices saw a sharp pullback, with over 200 stocks hitting limit-down. The core issue lies in liquidity differences across the market. Heavyweight indices continued to optimize their chip structure under the support of large funds, while the negative liquidity feedback in the tech sector has yet to be resolved. An important external trigger for this market correction is the deleveraging in the South Korean stock market. Data shows that margin balances in Korean stocks have dropped by 13.6%. Compared to historical deleveraging ranges of 30%-70%, the current clearing progress is less than halfway through. Retail investors' margin balances have fallen back to early-year lows, weakening market support. Although forced liquidations in Korean stocks have significantly subsided and top leveraged ETFs have shrunk by over 40%, retail investors still show bottom-fishing sentiment. Several positive stabilization signals have emerged in the market. Samsung Electronics' leveraged ETFs continue to see redemptions, market maker disruptions are diminishing, retail investors' margin balances are stabilizing, and foreign capital has ended its one-sided outflow trend, with hedge fund money starting to flow back in. Historical patterns suggest that foreign capital inflows often signal a market turning point. On the policy front, efforts to stabilize the market are intensifying. The China Securities Regulatory Commission (CSRC) held a market stabilization meeting, emphasizing its commitment to maintaining market stability. Additionally, three major insurance institutions have expressed support for the capital market. Coupled with the late-session surge in broad-based ETFs, market sentiment has been effectively stabilized. Large-cap blue chips are leading the recovery, and as the number of limit-down stocks decreases, the liquidity pressure in the tech sector is expected to gradually ease, allowing indices to continue their rebound. For investment allocation, focus on three key directions: 1. **Computing power sector**: Leading players are showing initial signs of stabilization, and after liquidity risks are fully released, a strong rebound is expected. 2. **Innovative pharmaceuticals**: Stable performance with a sustained upward trend. 3. **Securities and dividend sectors**: Strong defensive attributes, suitable for balanced allocation.