Dear readers, the recent decline of the Hong Kong stock markets has brought down its technology-related stocks. One of Hong Kong tech-related stocks which has bore the brunt of selling is none other than Alibaba Group Holding Limited (9988.HK) listed on the Hong Kong stock exchange.
Alibaba Group stock closed at HK 148.70 yesterday per share, down 1.85% for the day. With a 52-week high of HK 309.40, Alibaba stock has retreated by almost 52% for the year.
A noteworthy point is that yesterday’s price of Alibaba Group stock was also lower than the IPO price of HK 176 for Alibaba stock. That means to say, if investors were to purchase Alibaba stock now at yesterday’s price, they will be paying for the stock at about 16% discount off Alibaba IPO price.
A discount off IPO price? That may sound interesting to investors interested in Alibaba stock. But investors would need to be aware that the Chinese and Hong Kong stock markets are rather volatile now with the episode concerning Evergrande and the slew of Chinese regulations that may be passed from time to time.
But it may be at such low stock prices that are likely to reward investors with long holding power and who believe in the business proposition of AliBaba. It is reported that well-known investor, Charlie Munger has started a position in AliBaba in the first quarter of 2021.
This article is not a recommendation for AliBaba stock. Investors should always do their own due diligence when it comes to investing.
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