THE INSIDER
The Insider
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Buying among company directors rebound in Hong Kong

PUBLISHED : Sunday, 22 November, 2015, 2:24pm
UPDATED : Monday, 16 January, 2017, 10:28am

The buying rebounded while the selling among directors fell based on filings on the Exchange in the third week of November. A total of 30 companies recorded 183 purchases worth HK$331 million versus 13 firms with 53 disposals worth HK$83 million. The buy figures were up from the previous week’s 27 companies, 117 purchases and HK$251 million.

On the selling side, the number of firms and trades were down from the previous week’s 17 companies and 86 disposals. The sell value, however, was slightly up from the previous week’s sales worth HK$77 million.

Aside from directors, the buyback activity rose last week with 19 firms that posted 82 repurchases worth HK$782 million. The number of companies and trades were up from the previous week’s 11 firms and 63 transactions. The value, however, was sharply down from the previous week’s turnover of HK$2.153 billion.

The huge fall in the value was not surprising as the bulk of the turnover in the previous week was by Evergrande Real Estate Group worth HK$1.5 billion. Evergrande slowed its activity last week with only 45 million shares purchased worth HK$283 million at an average of HK$6.27 each. The stock closed at HK$6.46 on Friday.

There were several first-time purchases last week with buys in Koradior Holdings, Sky Light Holdings, NewOcean Energy Holdings and Aurum Pacific China Group. The acquisitions were made following the fall in their share prices. Bucking the trend was China Harmony New Energy Auto Holding with a director buying shares for the first time following the sharp rebound in the share price.

High-end ladies-wear designer and distributor Koradior Holdings bought back for the first time since listing in June 2014 with 700,000 shares purchased from November 19 to 20 at an average of HK$9.84 each. The trades were made on the back of the 10 per cent drop in the share price since July from HK$10.96. Despite the fall in the share price, the counter is still up since July 2014 from HK$4.38.

The Company’s buyback prices were higher than the IPO prices of HK$3.05 to HK$4.51. The stock closed at HK$9.98 on Friday.

Founder, Chairman & CEO Terry Tang Wing Fong recorded the first trades by a director in digital devices and solutions provider Sky Light Holdings since the stock was listed in July with 497,000 shares purchased on November 12 at HK$2.23 each. The trade increased his holdings to 423.429 million shares or 52.9 per cent of the issued capital.

The acquisition was made on the back of the 24 per cent drop in the share price since October from HK$2.92. The counter is also sharply down since July from HK$3.60. The Chairman’s purchase price was lower than the IPO prices of HK$2.68 to HK$3.38. The stock closed at HK$2.59 on Friday.

Executive Director Raymond Chiu Sing Chung recorded his first trade in liquefied petroleum gas distributor NewOcean Energy Holdings since his appointment in 2003 with 426,000 shares purchased on November 17 at HK$3.25 each. The trade increased his holdings by 6 per cent to 7.053 million shares or 0.48 per cent of the issued capital. The acquisition was made on the back of the 32 per cent drop in the share price since April from HK$4.75. The counter is also sharply down since February 2014 from HK$8.40. The stock closed at HK$3.29 on Friday.

Chairman Zhang Weijie recorded the first trades by a director in software products developer Aurum Pacific China Group since the stock was listed in January 2004 with 27 million shares purchased on November 12 and a further 20 million shares on November 18 at HK 10.3 cents each.

The trades, which accounted for 13 per cent of the stock’s trading volume, increased his holdings by 14 per cent to 383.000 million shares or 7.6 per cent of the issued capital. The acquisitions were made on the back of the 68 per cent decline in the share price since June from HK 32 cents. The counter closed at HK 9.7 cents on Friday.

CFO Qian Ye Wen recorded his first trade in luxury passenger vehicles dealer China Harmony New Energy Auto Holding since his appointment in September with 80,000 shares purchased on November 13 at HK$6.01 each. The trade increased his holdings to 8.412 million shares or 0.53 per cent of the issued capital. The purchase was surprising as it was made after the stock rebounded by 93 per cent from HK$3.11 in September. Despite the rebound in the share price, the counter is still down since June from HK$11.00. The stock closed at HK$6.55 on Friday.

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