Chairmen dive into property blue-chips but inside buys slide

Henderson Land and Sino Land chiefs expand holdings as overall transactions decline

PUBLISHED : Monday, 22 April, 2013, 12:00am
UPDATED : Monday, 22 April, 2013, 2:50am

Directors snapped an eight-week run of rising insider buys last week, with 40 companies reporting 171 purchases worth HK$276 million, based on filings to the stock exchange for the third week of April.

The figures were down from the previous week's 51 companies that reported 212 purchases worth HK$832 million.

Insider sales were also lower, with 13 companies reporting 64 disposals worth HK$62.8 million - down from the previous week's 20 companies that reported 77 disposals worth HK$203 million.

Chairman Lee Shau-kee, of blue-chip property developer Henderson Land Development, headed the list of buyers for the second straight week, with 3.52 million shares bought from April 9 to 15 for HK$191.6 million at an average of HK$54.42 each.

The trades increased his holdings to 1.53 billion shares, or 63.48 per cent of the issued capital, and brought his total purchases since the last week of March to 19.2 million shares worth HK$1.02 billion.

He resumed buying last month after Henderson announced a 17.6 per cent gain in annual profit to HK$20.21 billion on March 25.

Another property tycoon who bought shares last week was chairman Robert Ng Chee Siong of Sino Land. He bought 190,000 shares from April 11 to 12 at an average of HK$12.64 each. The trades raised his holdings to 3.15 billion shares, or 53.06 per cent of the issued capital.

The purchases followed a 19 per cent drop in the share price since January from HK$15.58. Ng previously acquired 1.07 million shares in September 2011 at an average of HK$12.24 each.

Meanwhile, there were rare purchases by high-level executives in Chinalco Mining, China Rare Earth, and Leoch International Technology following sharp falls in their share prices.

Chief financial officer Liang Yunxing recorded the first corporate shareholder trade in non-ferrous and non-aluminium mineral explorer and developer Chinalco Mining since the stock was listed on January 31, with an initial 100,000 shares bought on April 11 at HK$1.31 each. The acquisition was made after the stock rebounded by 13 per cent from HK$1.16 on April 5.

Despite the rebound in the share price, the counter is still down since February from HK$1.70. Liang's purchase price was lower than the IPO price of HK$1.75. The stock closed at HK$1.30 on Friday.

Chairman Jiang Quanlong recorded his first trade in rare earths products manufacturer China Rare Earth since October 2011, with 328,000 shares bought on April 15 at HK$1.22 each. The trade increased his holdings to 562.82 million shares, or 33.65 per cent. The acquisition came after a 35 per cent decline in the share price since January from HK$1.89. The counter is also sharply down since March 2012 from HK$2.55.

Jiang previously bought 292,000 shares in October 2011 at HK$1.30 each, 1.8 million shares from May to November 2006 at an average of HK$1.47 each, and 850,000 shares in November 2005 at an average of 69.1 HK cents each.

The counter closed at HK$1.27 on Friday.

Chairman, chief executive and founder Dong Li recorded his first trade in lead-acid battery manufacturer Leoch since August 2012, with 400,000 shares bought on April 15 at 97 HK cents each. The trade increased his holdings to 1.0015 billion shares, or 74.98 per cent.

The acquisition was made on the back of a 37 per cent drop in the share price since January from HK$1.53.

Dong's purchase prices were sharply lower than the IPO price of HK$5.35. The counter closed at 98 cents on Friday.

Robert Halili is managing director of Asia Insider