The A-shares fell sharply today, with the Shanghai Composite Index plummeting by 6.6% and the ChiNext Index dropping by 10%. Yang Delong, Chief Economist of Qianhai Kaiyuan Fund, believes there are three main reasons for this, including profit-taking and external market influences. He pointed out that the logic behind this market rally remains unchanged, as a series of incremental policies have boosted market confidence. After this round of adjustment, the market is expected to usher in a second wave of upward trend. According to reports, Yang Delong analyzed three main reasons for the significant adjustment in A-shares. Firstly, there is pressure from profit-taking. Over the past week, many stocks have seen gains of over 30%, accumulating a large amount of profit-taking pressure which led to a significant market adjustment, correcting the rapid rise in the previous period. Secondly, there is pressure from external market influences. Yesterday, Hong Kong stocks, ADRs, and the Singapore FTSE A50 index all experienced significant declines, causing a market-wide effect. Lastly, there is an adjustment in the pace of this round of rally. The logic behind this rally remains unchanged. Several significant policies have driven the market, and there are still more incremental policies to come, all of which enhance market confidence. Therefore, after completing this round of adjustment, the market is likely to see a second wave of upward trend. Yang Delong also expressed confidence and patience in the resonance between policy bottom and market bottom in this rally. He advised investors to maintain a rational and stable mindset when the market experiences adjustments, avoiding short-term operations which often struggle to grasp the rhythm and may lead to losses. He also recommended positioning in quality stocks and funds in the low market and patiently holding onto them to achieve better investment returns in exchange for time.