I hold 40,000 shares of SMIC at an average cost of $23.39 HKD. My total investment was $935,000 (S$158,000).
At the lowest point on 2 May 2022, the price was $15.20. My loss was 36%.
The stock price rebounded recently, and is now at $22.45. My loss has reduced to 4%.
At the current price, the price earning ratio is 10.99. This is somewhat low for a growth stock.
Investors expect that the Chinese government will support their semiconductor industry to weather the sanctions imposed by America. This led to the sharp recovery.
I will monitor the stock closely from here.
Tan Kin Lian