The dividend stocks finally crashed on June 11.

The trading volume of the two markets was close to 700 billion, with a significant reduction in volume, and northbound capital saw a net outflow of 75 billion. Compared to the STAR and ChiNext markets, the Shanghai Composite Index seems to have started a catch-up decline. In early trading today, the A-share and H-share markets both experienced heavy-volume declines. The main news over the weekend was the China Securities Regulatory Commission's (CSRC) announcement to resume the IPO review process for A-shares, with exchanges getting back to work. This should be a minor positive for A-share brokerages (though, honestly, who would buy brokerages now? Mark my words—brokerages might not recover before mid-July).

The early session's heavy-volume sell-off was mainly concentrated in small and mid-cap stocks. Given the stricter regulations and higher costs for high-frequency quantitative trading, it's expected that quant funds will collectively adjust their positions first. As a result, small-cap stocks with previously good liquidity might need to wait until quant funds finish their adjustments before hitting bottom.

Market attention on hard-tech sectors like semiconductors has further increased, alongside high-volume adjustments in high-dividend stocks. Under current conditions, the semiconductor sector's strong performance might last until the end of June (comparing to Nvidia, it seems SMIC is the most solid play /doge#).$SMIC(00981.HK) 

Let’s not dive too deep into semiconductors—outsiders shouldn’t talk too much. The other two heavyweight sectors on the ChiNext board are new energy and pharmaceuticals. What could truly be called hard-tech now is solid-state batteries, which aim to improve capacity beyond current lithium-ion electrolyte batteries. The commercialization of solid-state batteries would increase battery manufacturers' demand for lithium, inevitably boosting inventory for lithium ore raw materials.$TIANQI LITHIUM(09696.HK) The silicon-carbon anode materials for solid-state batteries are still relatively expensive, and large-scale commercialization remains some way off.

I’m not too familiar with pharmaceuticals, so I can only refer to the valuation levels of innovative drug companies in Hong Kong stocks. Currently, pharmaceutical stocks on the ChiNext board are also undervalued.
 

Historically, this decline in high-dividend stocks should be a major pullback within an upward trend. Since it coincides with the tech sector’s strength, a capital diversion effect is inevitable. In the short term, it’s not advisable to rush back into high-dividend stocks—wait until profit-taking waves subside and volume shrinks before reconsidering.