What a Freaky Friday for me, UOB and Alibaba!

Yesterday was the 1st day of the Hungry Ghost Festival. If you are a believer, have you done your prayer? Anyway it is a freaky Friday for me not because of anything supernatural, it's more of the movement of 2 stocks that I am holding. Double whammy on the same day. 

Despite the respectable result by UOB, the share price dropped by more than 2%. A reader jokingly mentioned dividend is 0.60 SGD, but share price dropped by 0.71 SGD. Doesnt make sense at all! I happily posted the entry and went out thinking it is going to be a winner , but when I finally check back, I was shocked to see the share price had a diarrhea. It is most likely due to the news on UOB suing a Chinese developer. I think this is most likely a knee jerk reaction. UOB top boss acknowledged that there is 1 customer accounted for the lion's share of UOB's loan exposure in China and also non performing loan ratio inched up top 1.7% from 1.5%, not good, but not catastrophic isnt it? Let's see how this unfold, but I am not worrying.

"UOB's overall non-performing loan ratio inched up to 1.7 per cent as of Q2 from 1.5 per cent a year ago, due to one large non-performing loan. Lee also said a customer accounted for the lion's share of UOB's loan exposure in mainland China. He did not disclose the customer's identity, but Bloomberg reported on Jul 28 that UOB has sued Chinese property developer Shimao Group Holdings and 4 related entities for allegedly breaching loan and security agreements by reallocating loans and allotting shares among the entities without the Singapore lender's consent"

The next one will be Alibaba. The week started positively with news of Alibaba applying for primary listing, there after it is diarrhea all the way due to firstly, anticipation of first negative quarterly revenue growth. Ok, but back in 2019, Alibaba's share price was 176 HKD at IP. Revenue was around 70B back then. The Revenue now is almost double. Then the big one came yesterday when the SEC added Alibaba into the bucket of companies to be delisted if they cant confirm to the regulation. Cant say that I am surprised, but the market certainly didnt like it. The Baba ADR was slaughtered. 9988 will face the same on Monday. Brace, brace, brace! I really dont know man, Alibaba will have 3 years to conform to the regulation but the market has already sentenced it to death. 3 years is a long time, to sort shit out. I will be panicking if a perfect storm hit 3 years later when zero covid is still the policy in China, and Alibaba really got ejected from NY without a primary listing. We have to know Alibaba is not like DiDi, the company has a secondary listing in HK and Primary listing should be through by end of the year. DrWealth has a good summary.  I actually feel like buying more 9988. Maybe ill do it next week if it goes to 80 HKD.