The Insider
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Sharp rebound in Hong Kong director buys (US$63.5m), sales (US$18.7m), and buy-backs (US$77.5m)

Purchases and sales follow sharp fall in share prices with buy-backs in E-Commodities Holdings, insider buys of Chanhigh Holdings and Medicskin Holdings, and sales of Genscript Biotech Corporation and AL Group.

PUBLISHED : Sunday, 15 October, 2017, 3:00pm
UPDATED : Sunday, 15 October, 2017, 10:40pm

Director and buy-back activity rebounded sharply based on filings on the Hong Kong stock exchange in the second week of October.

A total of 52 companies recorded 316 director buys worth HK$496 million (US$63.53 million) versus 16 firms with 52 insider disposals worth HK$146 million (US$18.7 million).

The figures were sharply up from the previous week’s three-day totals of 30 companies, 142 buys and HK$284 million on the buying side and 6 firms, 13 disposals and HK$54 million on the selling side.

On the buy-back side, a total of 25 companies posted 97 repurchases worth HK$605 million (US$77.5 million) based on filings from October 6 to 12.

The number of firms and trades were sharply up from the previous 3-days’ totals of 17 companies and 56 repurchases. The value, however, was down from the previous 3-days’ turnover of HK$767 million.

There were several stocks that recorded buys and sales following the sharp fall in their share prices with buy-backs in E-Commodities Holdings, insider buys of Chanhigh Holdings and Medicskin Holdings and sales of Genscript Biotech Corporation and AL Group.

Coking coal supplier E-Commodities Holdings bought back 1.26 million shares on September 28 and a further 1.2 million shares from October 11 to 12 at HK$0.73 to HK$0.79 each or an average of HK$0.76 each.

The group previously acquired 18.4 million shares from November 30 to December 19, 2016 at HK$0.78 to HK$0.88 each or an average of HK$0.84 each and 17.8 million shares from September to October 2011 at HK$1.85 to HK$1.48 each or an average of HK$1.71 each. The counter closed at HK$0.79 on Friday.

The recent buy-backs were made after the stock fell by as much as 53 per cent from HK$1.56 in March

The stock has reacted positively following buy-backs by the Group. The counter rose to HK$1.56 in March after the Group bought shares from November to December 2016 at HK$0.84 each. The stock also rose to HK$2.85 in December 2011 after the Company bought shares from September to October 2011 at HK$1.71 each.

CEO Peng Yonghui bought 104,000 shares of municipal works construction services provider Chanhigh Holdings on October 3 at HK$1.57 each. The trade increased his holdings to 450.104 million shares or 72.77 per cent of the issued capital. The stock closed at HK$1.56 on Friday.

Peng’s purchase is the first corporate shareholder trade in the company since the stock was listed on March 30 The purchase was made on the back of the 30 per cent drop in the share price since April from HK$2.25. The CEO’s purchase price was lower than the IPO price of HK$2.17.

Chairman & Founder Kong Kwok Leung bought 4.53 million shares of medical skin care firm Medicskin Holdings from October 6 to 10 at HK$0.53 each. The trades increased his holdings to 273.389 million shares or 56.91 per cent of the issued capital. The counter closed at HK$0.54 on Friday.

The buys by the chairman are the first corporate shareholder trades in the company since the stock was listed on GEM in December 2014. They accounted for 90 per cent of the stock’s trading volume. The buys were made on the back of the 53 per cent drop in the share price since October 2016 from HK$1.11.

Chairman & CEO Zhang Fang Liang sold 10 million shares of life sciences research products and services manufacturer and distributor Genscript Biotech Corporation from September 27 to 28 at HK$8.01 to HK$7.33 each an average of HK$7.39 each.

The trades reduced his holdings to 1.015 billion shares or 58.78 per cent of the issued capital. He previously sold 2.05 million shares on July 13 at HK$4.90 each and 7.05 million shares from April 3 to 7 via options-related sales at HK$4.05 to HK$4.24 each or an average of HK$4.10 each.

Aside from the sales since April, the chairman sold 2.9 million shares from March 21 to 27, some of which were options-related sales, at HK$4.78 to HK$4.47 each or an average of HK$4.47 each.

Before his sales this year, the chairman sold 7.62 million shares from October to December 2016, some of which were options-related sales, at HK$2.70 to HK$4.03 each or an average of HK$3.39 each. Zhang was appointed to the board in May 2015. The stock closed at HK$10.34 on Friday. The recent sales by the chairman were made after the stock fell by as much as 24 per cent from HK$9.66 on September 14.

Another Genscript director has sold shares this year. Vice-president of finance Meng Jian GE sold 680,000 shares on May 17 at HK$3.71 each. The sale was options-related as he acquired those shares on the same day via exercise of options at HK$0.60 each.

CEO & Co-Founder Yau Chung Ping sold 57.6 million shares of interior design services provider AL Group on October 9 at HK$0.22 each. The trade reduced his holdings to 144.004 million shares or 30.0 per cent of the issued capital. Mr. Yau was appointed to his post in February 2016. The counter closed at HK$0.206 on Friday.

The sale by the CEO is the first corporate shareholder trade in the company since the stock was listed in July 2016. The sale reduced the CEO’s holdings by 29 per cent.

The disposal was made on the back of the 61 per cent drop in the share price since February 15 from HK$0.58. The CEO’s sale price was sharply lower than the IPO price of HK$0.64.

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