Abstract: Explain the reasons of buying HK stock China Merchants Bank and share my views.
What I want to share with you today is the transaction I made on July 15. The details are as follows:
- China Merchants Bank (HK stock code: 3968)
- Quantity: 500 shares
- Bought price: HK$41.95
- Commission fee: HK$50.15
Reasons to buy 3968
Recently, a number of Chinese bank stocks have collectively dived. Among them, China Merchants Bank has fallen by a large portion. After a few days of decline, China Merchants Bank has fallen by about 15%. Today, I see that the bank stocks have begun to stop falling. I don’t know if this is near the bottom. But in any case, the current price has dropped by more than 26% compared to when I increased my position last year, which was about HK$57. I think it is definitely attractive to start buying this stock.
The reason for this round of Chinese bank decline is that a number of residential properties have been suspended building, and people have collectively cut off their mortgage payment. I think that the government will never allow this situation to continue to spread. I believe that this kind of policy-led atmosphere in the situation of the mainland China will not let it deteriorate beyond control. As for China Merchants Bank, I believe that its excellent management team will be able to solve the difficulties smoothly. I think the current share price will be very attractive after this crisis is over.
Comments and sharing
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