[Huatai Securities A-share strategy: Continue to rebalance along the "allocation gap" between profits and chips] On September 7, Huatai Securities released its A-share strategy saying that the market continued to adjust last week, with the CSI All-Share Index falling nearly 2%, and the double entrepreneurship and innovation fell more than 4%, and the high-low switch continued. In terms of transactions, congestion is accelerating. The proportion of stocks in the top 5% of transactions fell below the one-year average. The proportion of electronics and communications transactions returned to within the threshold. Financing funds mainly flowed from electronics and communications. However, public offering electronics positions are still at a high level, and the pressure of public offering chips still exists. Macroscopically, the 10Y U.S. bond interest rate hit a one-year high, and the probability of a rate hike in September rose to 57%. The rise in U.S. bond interest rates is an asymmetric downside risk to A-shares, and excess dividends dominate. On a micro level, the mid-term report confirmed that the profit growth rate is on the rise, and the peak may be in the fourth quarter of 2026, but the pull is concentrated on TMT and upstream. The market is reducing its position in some AI hardware that has realized the prosperity, and is turning to varieties near the bottom inflection point, such as some necessities. In summary, in the short term, it is recommended to control positions, continue to rebalance along the "allocation gap" between profits and chips, use dividends as a bottom position, and wait for US CPI data, the implementation of FOMC and new industry catalysis.