Insiders are buying again in Hong Kong. In its latest 'Watchdog' report, Credit Lyonnais Securities Asia says sentiment has totally changed since the first quarter.
Analyst Cosmo D'Agostino says net sellers in the first quarter were net buyers in the second.
Activity among directors of Hong Kong listed companies on the buy side jumped in the second quarter to 2.9 times at the end of June on the insider buy-sell ra-tio.
To place it in context, this ratio compares with 1.4 times at the end of March and 2.5 times in the heady liquidity boom days of November 1993.
The trend is even more pronounced in transactions of $10 million or less.
The brokerage says the four-week moving average buy-sell ratio below $10 million climbed from 1.8 times in March to 3.9 times at the end of June.
