China's three main A-share indexes opened mixed on August 7, with sentiment improving modestly after the previous session's broad selloff but caution still evident. The Shanghai Composite Index opened at 3,896.49, down 0.1%, while the Shenzhen Component Index rose 0.3% to 14,152.78 and the ChiNext Index climbed 0.62% to 3,537.44. Early trading was shaped by sector rotation: humanoid robots, PCB (printed circuit boards), rare metals, and water conservancy and hydropower attracted buying, while gold, rare earths, solar power, memory chips, nuclear fusion, and new energy vehicles weakened. Wind data showed breadth improved but remained negative overall, with 1,878 stocks higher, 2,711 lower, and 941 unchanged across the Shanghai, Shenzhen, and Beijing exchanges. Liquidity conditions stayed tight as the People's Bank of China (PBOC, China's central bank) injected 1 billion yuan in 7-day reverse repos (short-term central bank liquidity tools) at 1.40% against 134 billion yuan maturing, producing a net drain of 133 billion yuan. Margin financing also rose, with the combined balance across the three exchanges reaching 2.61 trillion yuan as of August 6. Analysts said the market is undergoing a rapid structural repair after overseas tech-stock volatility hit sentiment, but continued liquidity withdrawal and still-muted trading volumes may limit any broad index rebound, leaving sector-specific opportunities as the main near-term theme.