Alibaba's (9988) today hit an intraday low of 130.2 yuan, continuing to hit a new low for listing in Hong Kong. The stock price was more than halfway down from last year's high of (309.4 yuan), causing many retail investors to lose money.
In September last year, Alibaba was included in the HSI constituent stocks, making it an inevitable choice for many Hong Kong stock MPFs. Workers in disguise "reluctantly" bought the stock and indirectly "lost their hands." Bloomberg commented that they were unfair and blunt. Feel sympathy.
Hang Seng Index respectfully accompany the last seats
The article pointed out that the timing of Ali's inclusion of blue chips is extremely bad (extraordinarily bad), because the stock price has been cut in half since it dyed blue on September 7, 2020, dragging the Hang Seng Index into one of the world's worst performing markets.
According to tracking indicators compiled by Bloomberg, as of this Wednesday (24th), among the 92 major indexes, the Hang Seng Index ranked 91st in the past 12 months, which is close to the end of the package. The worst is the China National Index. The constituent stocks have Alibaba!
Today (26th) the market closes at noon, the Hang Seng Index has fallen by 11.08% this year, and the H-Share Index has fallen by 19.6%.
Alibaba hit an intraday low of 130.2 yuan today, continuing to hit a new low for listing in Hong Kong.
(Reuters)
Including Ali is not an inevitable choice
The commentary believes that including Alibaba as a constituent stock is not an obvious or inevitable choice. The reason is that the HSI company needs to change the index rules in order to include Alibaba and other second-listed and same-share non-weighted companies.
The comments also pointed out that the Hang Seng Index has a dominant position in the MPF. Major MPF providers, such as Manulife Financial and HSBC, provide MPF related to the Hang Seng Index. Part of the pension is invested in Ali.
What's more, Alibaba's weight in the Hang Seng Index rose from 4.8% initially to 10.5% in July this year. At that time, Alibaba's stock price had evaporated by one-third from the high, and the weight fell back to 6.8% on Tuesday.
Looking at the information, take HSBC, one of the leading MPFs, as an example. As of Thursday (25th), the Hang Seng China Enterprise Index Fund provided by the bank has fallen 15.82% in the past 12 months, Chinese equity funds have fallen 9.75%, and China and Hong Kong stocks. Funds fell 8.03%, the HSI Fund fell 5.58%, and the top ten positions of the four funds all included Alibaba, which accounted for 8.3%, 8.7%, 7.3% and 7.7% of the portfolio respectively.
Alibaba is included as a constituent stock, and many workers' MPFs also hold it.
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No need to rush
The commentary pointed out that when Alibaba was incorporated as a constituent stock at the beginning, it was widely supported when consulting the market. Later, Alibaba also took off for a while, and then encountered a regulatory storm.
Although it is a bit of an afterthought, the comments believe that nothing has forced the HSI to act hastily and incorporate an otherwise unqualified company when investor sentiment is high.
The article frankly stated that the Hang Seng Index has full discretion to decide which stocks to add or remove, but this is different from the rule-based approach of other international indexes.
The article added that index compilers should not try to become "market-timers", and "wait a minute" is not a problem, and future retirees in Hong Kong will at least thank them!
Alibaba’s 130 yuan is now the “Great Wall of Flesh” with 2500 people guarding 2 million shares | Hong Kong stocks move Alibaba hits a record low risk and maintains 130 gates The number of fraudulent websites remains high. The mainland rumored to impose a data tax on the tech giants. Alibaba and Meituan both fell 3% or more. After their performances, they met each other. Experts: Alibaba was hit by "antitrust".
