May 2025 Update: China's Growing Influence; Adapting My Investment Strategy
In light of the recent trade war's impact on the market, I believe my portfolio will be more resilient to ongoing tariff developments. May 2025 portfolio update: paper profits 0.1%, dividend received 12K, booked dividend 15K, estimated passive income 20K in 2025.
When considering the global macroeconomic landscape, China’s power and influence are becoming increasingly significant. The United States cannot halt or slow this trend, and it is evident that the trade war has affected Americans more than the Chinese.
I am a primarily dividend-focused investor, but I have decided to increase my holdings in HST, particularly in Alibaba. The tracker of Hong Kong's dividend yield aligns closely with my portfolio's yield levels, making immediate additions less urgent. Regarding the outlook for Hong Kong stocks, they appear to be more affordable than China A shares. I anticipate that international capital will continue to flow into Hong Kong stocks due to couple factors, such as low weight allocation in China, rising U.S. debt levels, tariff policies, weak USD and the high valuation of US stocks...
I tend to shy away from technology stocks, as their valuations are often not attractive. High valuations necessitate rapid growth to justify prices; if growth falls short of expectations, stock prices can drop significantly. I do not feel confident in my ability to assess the future growth trajectories of technology stocks.
However, Alibaba is an exception to this case. Its valuation currently aligns with that of blue-chip companies, presenting a price-to-earnings (P/E) ratio of 15.6. Alibaba has two primary growth engines: its e-commerce platform and its cloud intelligence division. The e-commerce business maintains steady, albeit slow, growth and serves as a reliable cash cow. In contrast, the cloud intelligence segment is clearly the future growth driver, consistently achieving double-digit growth in recent quarterly results. I have no doubt that cloud computing and artificial intelligence represent the future, and Alibaba is positioned as one of the best players in this arena. From a technical standpoint, Alibaba outperforms Amazon. I question whether Amazon can effectively manage Alibaba's peak trading order volumes and post-order delivery during high-demand periods. Amazon P/E is 32.
$LION OCBC HSTECH ETF S$(HST.SI)$
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- cheerzy·2025-06-03Great insights1Report