Directors see reasons to sell as buying volumes dive on Hong Kong market

Evergrande chief executive and vice-president trim stakes, while Baoye makes first purchase

PUBLISHED : Monday, 28 April, 2014, 4:43am
UPDATED : Monday, 28 April, 2014, 4:51am

The buying plunged while the selling among directors rose based on filings to the stock exchange during the short holiday week.

A total of 29 companies recorded 118 purchases worth HK$126 million versus 10 firms with 35 disposals worth HK$179 million, from Tuesday to Friday. The buy figures were down from the previous week's 34 firms, 177 purchases, and HK$523 million. On the selling side, the number of firms was down from the prior week's 14 companies, but the number of trades rose from the previous week's 32 disposals worth HK$41 million.

Buyback activity fell with 12 firms that posted 52 repurchases worth HK$114 million. The figures dropped from the previous week's 13 firms, 62 trades, and HK$181 million.

Construction firm Baoye Group bought back for the first time since listing in June 2003 with 2.28 million shares at HK$4.36 each on Friday. The trade followed a 24 per cent drop in the share price since November 2013 from HK$5.76.

Chief executive Xia Haijun recorded his first trades in property developer Evergrande Real Estate since he joined the board in June 2007. He sold 26.2 million shares from April 14 to 16 at an average of HK$3.83 each. The trades reduced his holdings to 73.82 million shares or 0.51 per cent of the issued capital. The disposals came after a 39 per cent rebound in the share price since January from HK$2.75.

Evergrande vice-president Li Gang sold 33.08 million shares from April 1 to 7 at an average of HK$3.87 each. The trades lowered his stake to 10 million shares or 0.07 per cent.

Chairman and chief executive Zhou Xiangyang recorded his first trades in motor and electronic components manufacturer Welling since he joined the firm in 1996. He sold 2.87 million shares April 14 to 24 at HK$2.51 each. The trades cut his holdings by 53 per cent to 2.53 million shares. He had acquired 2.87 million shares via options from April 14 to 24 at 79 HK cents each.

Executive director Sidney To Shu-sing resumed selling shares of Playmates Toys at sharply higher than his sale price in July 2010, with 4.9 million shares from March 28 to April 11 and a further 1.68 million shares on April 23 at an average of HK$3.59.

Robert Halili is the managing director of Asia Insider