China , Alibaba and United Hampshire
If you have been reading my blog, you would know that i am quite bullish on China, particularly on Alibaba. I have been increasing my position for Alibaba for the past months. Refer to this entry. Its currently around 14% of my total portfolio. Went down a tad as i bought more shares along the way as well. Another reason why I am still bullish with China is because while the whole world is grappling with high inflation. China's inflation is at a respectable number. There's still room for more stimulus!
Share price has been on a tear recently, going up by 30% compared to a month ago. The 1 big news that i was waiting for is the IPO of Ant financial. If you can remember, the Ant financial IPO saga was the turning point for all China tech stocks. This reminds me of a saying in the 风云， 成也风云 败也风云, but in reverse in the case of chinese tech stock. In this case, Ant financial IPO saga was the event that brought the entire Chinese tech industry down, and the start of the crackdown on the industry. It is only fitting that the Chinese tech industry rise from the ashes because of Ant Financial IPO again.
Can you imagine my excitement when i saw the news of China authority considering allowing Ant financial to IPO? The futures of Baba was trading at 8% higher at some point to only be brought down to earth when the china authority came out to clarify that it is not true. However, I believe in 无风不起浪。 Direct translation is "No wind, no wave". haha! Mr XJP will need something to sustain the growth of China without losing face to the western world and still continue to hold on to zero Covid policy. The only way to do that is to leverage on the size and success stories of their tech industry.
On other news, United Hampshire Reit made an acquisition recently which you can read it from here. The acquisition will be partially funded by the proceeds from the sale of the 2 self storage buildings, internal resources and more borrowing which will in turn increase the gearing to above 40%. Not something I like. Lets see how things pan out in the near term when interest rate gets even higher.
There's 1 thing that i find it weird or perhaps its my wrong understanding in the BT article. How is UHreit the first reit with US exposure here? There's so many other reits that came before it. Unless they are referring to the specific industry of having grocery tenants anchored malls.
"Committed occupancy of portfolio will increase to 96.6 per cent with this acquisition - the highest occupancy achieved since its initial public offering. UHReit, which made its debut on the Singapore Exchange on Mar 12, 2020, is the first Reit with US exposure here."