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Undervalued China stocks
01 Feb 2023 (504 views)  

1. I invested HK$ 2,061,000 (S$ 349,000) in 4 China stocks that shows a big discount to the prices in Shanghai. The average discount is 60%. The price in Shanghai is 2.5X of the price in Hong Kong.

2. Based on the current prices, my investment shows a loss of $618,000 or 29% from my cost. 

3. The average price earning ratio of these stocks is 8.26 times and the average dividend yield is 3.85%.

4. I am holding these stocks because I expect that they will move closer to the price in Shanghai. If the discount is reduced to 30%, the prices should move up by 75% from the current level. This will give me a 20% gain over my cost (instead of a loss of 29%).

Note - I am sharing an observation, i.e. not giving investment advise.

Tan Kin Lian

Undervalued China stocks
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1. I invested HK$ 2,061,000 (S$ 349,000) in 4 China stocks that shows a big discount to the prices in Shanghai. The average discount is 60%. The price in Shanghai is 2.5X of the price in Hong Kong.

2. Based on the current prices, my investment shows a loss of $618,000 or 29% from my cost. 

3. The average price earning ratio of these stocks is 8.26 times and the average dividend yield is 3.85%.

4. I am holding these stocks because I expect that they will move closer to the price in Shanghai. If the discount is reduced to 30%, the prices should move up by 75% from the current level. This will give me a 20% gain over my cost (instead of a loss of 29%).

Note - I am sharing an observation, i.e. not giving investment advise.

Tan Kin Lian