The Insider
by

Stock buying by company directors surge in Hong Kong

PUBLISHED : Sunday, 20 December, 2015, 3:12pm
UPDATED : Monday, 16 January, 2017, 10:28am

The buying by directors surged with 56 companies that recorded 316 purchases worth HK$634 million based on filings on the exchange in the third week of December. The figures were sharply up from the previous week’s 42 firms, 245 purchases and HK$342 million. That is the fifth straight week of heavy insider buying with this recent splurge prompted by the correction in the market.

The selling, on the other hand, rose slightly with 14 companies that recorded 38 disposals worth HK$43 million. The number of firms was consistent with the previous week’s 15 companies while the number of trades and value were up from the previous week’s 33 disposals worth HK$19 million.

The fall in the market prompted buybacks and insider purchases in several listed firms. Among the stocks that recorded price support are Linekong Interactive, Haitian International, and Wasion Group.

There was strong price support in mobile game developer Linekong Interactive with purchases by Chairman and CEO Wang Feng and buybacks by the company. Feng picked up 400,000 shares from December 11 to 14 at an average of HK$4.60 each, which increased his holdings to 77.223 million shares, or 20.92 per cent of the issued capital.

READ MORE: Buying by Hong Kong directors high for 4th straight week

The purchases were made on the back of the 39 per cent drop in the share price since October from HK$7.48. He previously acquired 572,000 shares from September 17 to 24 at an average of HK$6.88 each, 117,000 shares on August 25 at HK$5.59 each and 124,000 shares on July 8 at HK$6.78 each. The company, on the other hand, bought back 300,000 shares on December 14 at HK$4.78 each.

The group previously acquired 369,000 shares from November 19 to 26 at an average of HK$4.94 each, 100,000 shares on August 24 at HK$5.98 each and 201,000 shares from July 9 to 10 at an average of HK$8.34 each. The purchases by the chairman and the company since July are their first acquisitions since the stock was listed in December 2014. Their purchase prices were lower than the IPO prices of HK$9.80 to HK$13.10. The stock closed at HK$4.71 on Friday.

Non-executive director Liu Jian Bo and CEO Zhang Jian Ming acquired shares of plastic injection moulding machine manufacturer Haitian International with a combined 196,000 shares purchased from December 14 to 16 at an average of HK$11.18 each. The trades were made on the back of the 21 per cent drop in the share price since November from HK$14.12.

Non-executive director Liu Jian Bo purchased 50,000 shares on December 16 at HK$11.58 each, which boosted his stake by 13 per cent to 450,000 shares, or 0.03 per cent of the issued capital. He previously acquired 200,000 shares on August 27 at HK$13.68 each. Prior to his purchases since August, Liu sold 100,000 shares on April 28 at HK$19.38 each. Prior to that disposal, the director acquired an initial 300,000 shares on January 9 at HK$15.27 each.

CEO Zhang Jian Ming, on the other hand, acquired 146,000 shares on December 14 at HK$11.05 each, which increased his holdings to 954.059 million shares, or 59.78 per cent. He previously sold 84.28 million shares in January 2013 at HK$9.20 each, 5 million shares in March 2012 at an average of HK$9.37 each and 2.64 million shares from March to April 2011 at an average of HK$10.12 each. The stock closed at HK$11.34 on Friday.

Chairman Ji Wei and non-executive director Hui Wing Kuen acquired shares of electronic products manufacturer Wasion Group with a combined 1.04 million shares purchased from December 11 to 15 at HK$7.45 to HK$7.80 each or an average of HK$7.63 each. The trades, which accounted for 11 per cent of the stock’s trading volume, were made after the stock fell by 16 per cent from HK$9.08 on December 2.

Chairman Ji Wei purchased one million shares from December 14 to 15 at HK$7.63 each, which increased his holdings to 515.887 million shares, or 50.24 per cent of the issued capital. He previously acquired 1.17 million shares from August 20 to September 9 at an average of HK$8.34 each and 800,000 shares from March 25 to 27 at an average of HK$8.13 each.

Prior to his purchases this year, the chairman acquired 8.9 million shares from July to December 2014 at HK$5.65 to HK$8.17 each or an average of HK$6.62 each and 8.8 million shares from March to May 2014 at an average of HK$5.21 each.

Non-executive director Hui Wing Kuen, on the other hand, recorded his first trade since September 2011 with 40,000 shares purchased on December 11 at HK$7.68 each. The trade boosted his stake by 10 per cent to 440,000 shares or 0.04 per cent. He previously acquired 20,000 shares in September 2011 at HK$2.99 each and 80,000 shares in January 2010 at HK$5.96 each. The stock closed at HK$8.23 on Friday.

business-article-page