Buying by directors fell for the fourth straight week and selling surged, based on exchange filings from May 6 to 10. Selling outweighed buying, with insiders at 22 companies making 104 disposals worth HK$156.7 million while insiders at 21 firms made 69 purchases worth HK$43.7 million.
Sales jumped from the previous week's 4-day total, when insiders at 11 companies made 47 disposals worth HK$34.4 million. Buying fell from the previous week's total, when insiders at 23 firms made 75 purchases valued at HK$45.7 million.
Separate from directors, buyback activity by listed firms decreased, with 7 companies declaring 33 repurchases worth HK$144 million, less than the previous week's total when 10 firms made 41 buybacks worth HK$180 million.
The bulk of the significant insider trades were disposals of shares in Honghua Group, China Overseas Grand Oceans Group, Comtec Solar Systems, and Boer Power Holdings. The chairman of drilling rig manufacturer Honghua Group, Zhang Mi, resumed selling shares after the stock had risen 20 per cent from its April 8 price of HK$3.33. He dumped 5.6 million shares from May 2 to 7 at an average price of HK$3.87. The trades reduced his holding to 1.589 billion shares, or 49.07 per cent of issued capital. The stock closed at HK$3.94 on Friday.
Chairman Hao Jian Min unloaded his remaining stake of 970,000 shares, or 0.04 per cent of issued capital, in property developer China Overseas Grand Oceans Group from May 7 to 8 at an average of HK$12.62. He sold 780,000 shares from April 22 to 23 at an average of HK$11.91. The disposals since April were made as the company's share price rose. It was HK$8.26 in December 2012. Hao sold 3.2 million shares last year, from September to November, at an average price of HK$8.24. Hao's sales since September 2012 have been made at a profit. He acquired 4.9 million of the company's shares from May 2010 to January 2011 at an average price of HK$2.36. The stock closed at HK$12.38 on Friday.
Chairman & CEO John Zhang recorded his first trade in solar-grade silicon ingot and wafer manufacturer Comtec Solar Systems since the stock listed in October 2009. He sold 30 million shares on May 7 at HK$1.45 each. The trade reduced his holdings to 638.868 million shares, or 49.0 per cent. The share price has risen about 123 per cent since August 2012, when it was 65 cents, but is still down from April 2011, when it was HK$4.64. The price that Zhang disposed of the shares was less than the IPO price of HK$2.10. CFO Chau Kwok Keung sold 1.23 million shares on March 28 at HK$1.28 each, lowering his stake to 6 million shares, or 0.46 per cent. He sold 8.4 million shares from April to May 2011 at an average price of HK$4.39. The stock closed at HK$1.48 on Friday.
Qian Yi Xiang, chairman & CEO of electrical distribution system manufacturer Boer Power Holdings, has recorded his first sale of shares in the company since the stock listed in October 2010. Qian sold 3 million shares on May 3 at a price of HK$5.28. The trade reduced his holdings to 517.500 million shares, or 66.65 per cent. The stock price has risen 146 per cent since July 2012, when it was HK$2.15. The sale price was less than the IPO price of HK$6.38. Qian acquired 3 million shares in the company in July 2011 at an average price of HK$4.45.
The Capital Group Companies and its non-executive director Zhang Hua Qiao reported purchases. The company made a purchase-related filing on March 27. Some 1.19 million shares were bought.
Robert Halili is managing director of Asia Insider