Alibaba (BABA)
Luckin Coffee (LK)
U.S.-China Trade Talks
This is a short week but I wanted to give you some news on a couple of my recommendations that have been making news. I’ll be sending you a full update next week.
First, Alibaba (BABA) has moved from 182 to 190 this week as it launched a successful IPO on the Hong Kong stock market yesterday, raising just over $11 billion.
The Hong Kong-listed Alibaba stock rose 7% on its first day of trading.
This is against the backdrop of local elections in Hong Kong.
More than 70% of eligible voters turned out for local elections that became a referendum on the mood of Hong Kong after nearly six months of protests.
Voters swept away dozens of establishment and pro-China candidates vying for 452 district council seats and, for the first time, handed a majority to the city’s pro-democracy camp, which took control of 17 of the 18 councils, none of which they had previously won.
Meanwhile, Luckin Coffee (LK) continued to move upward, going from 28 to 31 over the past two days. I’m keeping it at buy but advise holders to take some profits off the table as the stock is up 63% over the past two weeks.
Phase one of the U.S.-China trade talks are still alive with both sides indicating optimism that something will get done by the end of the year.
Interestingly, while China exported $19 billion less to America in the third quarter of 2019 compared to a year earlier, China’s exports to Europe and East Asia were up $17 billion.
Have a great Thanksgiving break.