Abstract: Explain the reasons of buying HK stock Alibaba Group and share my views.
Transaction detail
What I want to share with you today is the transaction I made on November 26. The details are as follows:
Bought stock
- Alibaba Group Holdings Ltd (HK stock code: 9988)
- Quantity: 100 shares
- Bought price: HK$130.5
- Commission fee: HK$38.5
Image source: http://www.aastocks.com/en/stocks/quote/detailchart.aspx?symbol=09988
Reasons to buy 9988
Today, Alibaba’s share price plunged again and has hit a historical record low, falling to approximately HK$130. The reason for this decline is mainly due to poor quarterly result and management has adjusted the public’s expectations for future growth. There was also news today that the central government would restrict the payment business of WeChat Pay and Alipay, and the stock price fell accordingly.
This year, China’s stocks did not perform well, but from the perspective of the company’s shareholders, although the company is facing increased regulatory pressure, in fact, for the company’s future development, I don’t see that the company’s business development will be seriously affected. To a certain extent, I suspect Alibaba is trying to hide its profits. Because of the heavy penalties due to anti-trust issues, Alibaba does not want to show that he has made a lot of money at this time. And its management stated that it will increase investment and put all the money earned into investing in the future. I think this arrangement is very advantageous to the company’s future development potential.
Of course, no one knows when it will rebound from the bottom, but I think that as long as Alibaba’s long-term development is good, then it will be the right choice to take advantage of the low price level to add positions. Of course, relatively speaking, the funds I invest in Chinese companies will be less than that of American companies to balance risks.
Comments and sharing
If you have any questions, please feel free to leave a message or comment below, I will reply you. Or if you find anything incorrect in the article, please let me know and learn from you. If you find it interesting or it may help you in any sense, please share with other people.
