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[Semiconductor Sector Plunge Drags Shanghai Composite Index Lower in Morning Trading; Traditional Blue Chips like Real Estate and Liquor Buck the Trend] 1. On Friday morning, the Shanghai Composite Index closed slightly lower, with the semiconductor sector suffering a sharp decline. Analysts pointed out that there were clear signs of market funds rebalancing and switching stocks, and investors should be cautious about chasing high-priced technology stocks. 2. By midday close, the Shanghai Composite Index fell 0.4% to 4083.62 points, while the CSI 300 Index rose slightly by 0.1%. The Shenzhen ChiNext Index closed down 1.1%, while the Shanghai STAR Market 50 Index fell sharply by 3.6%. 3. Analysts pointed out that the liquor sector had shown some movement in the previous two days, and its renewed strength today may not be a short-term phenomenon, but more likely a shift in funds between high and low performers. They pointed out that the semiconductor sector, currently at a high level, lacks sufficient performance support and is expected to face a correction in the short term. As the Shanghai Composite Index and the ChiNext Index diverge further, the divergence in fund flows intensifies significantly, and the rotation speed of market hotspots may accelerate, with the overall market expected to continue its volatile pattern. 4. The semiconductor sector led the market decline, with the CSI All Share Semiconductor Products and Equipment Index plunging 4.2%. The market also focused on shareholder selling in the semiconductor industry, with Shanghai Silicon Industry Group Co., Ltd. falling 7.6%. 5. The real estate and liquor sectors bucked the trend, becoming the leading gainers. The CSI 300 Real Estate Index and the CSI Liquor Index closed up 5.6% and 4.6% respectively in the morning session. This was following the State Council's release of the 15th Five-Year Plan for Urban Renewal, which boosted related sectors.