Institutional shareholders, and some directors, exited these Hong Kong stocks, filings show
Share trading activity by company directors rose for the first time in the past four weeks based on stock exchange filings from February 13 to 17 with six companies that recorded 23 purchases worth HK$30 million versus six companies with nine disposals worth HK$124 million. The number of companies on the buying side was not far off from the previous week’s seven firms while the number of trades and value were up from the previous week’s 18 purchases worth HK$16.7 million. The sales, on the other hand, were sharply up from the previous week’s two companies, four disposals and HK$1.2 million.
While the buying by directors rose last week, the buyback activity plunged with only five companies that posted 20 repurchases worth HK$41 million based on filings from Monday to Thursday. The figures were sharply down from the previous week’s five-day total of nine firms, 45 trades and HK$65.7 million.
The huge sell value last week was mainly due to sales by the CEO of Skyworth Digital Holdings, as he unloaded HK$108 million worth of shares. The disposal, which was made after the stock rebounded by 29 per cent, was the CEO’s first sale since July 2017 and his single largest disposal to date. Meanwhile, several fund managers ceased to be substantial shareholders in a number of stocks last week as they either took profits or switched out of underperforming positions during the huge rally in the market this month. The fact that they lowered their stakes to slightly below 5 per cent of the issued capital are signs of more disposals to come. Among the stocks that funds exited from public view are Wynn Macau, CGN Power Co, China Sanjiang Fine Chemicals, Prada SpA, Beijing Jingkelong and Weichai Power.
Skyworth Digital Holdings
CEO Yang Dong Wen recorded his first on-market trade in television set manufacturer and distributor Skyworth Digital Holdings since July 2016 with 20.05 million shares sold on February 14 at HK$5.38 each. The trade reduced his holdings by 66 per cent to 10.336 million shares or 0.34 per cent of the issued capital. Also negative this quarter is Value Partners Group. The group ceased to be a substantial shareholder on January 16 following the sale of 3.86 million shares at HK$4.52 each, which lowered its stake to 146.808 million shares or 4.9 per cent. The shareholder previously reported an initial filing (for the third time since June 2012) in August 2016 of 2.16 million shares at HK$5.83 each, which raised its interest to 5.05 per cent. The stock closed at HK$4.99 on Friday.
Wynn Macau
The Capital Group Companies, Inc lowered its stake in casino and hotel company Wynn Macau to below 5 per cent of the issued capital at higher than its acquisition prices in 2016. The group ceased to be a substantial shareholder on February 14 following the sale of 3.57 million shares at HK$13.96 each, which reduced its holdings to 256.829 million shares or 4.94 per cent. The filing was made on the back of the 16 per cent rebound in the share price since December 2016 from HK$12.04. The counter is also up since September 2016 from HK$10.80. The group previously reported a purchase-related filing in August 2016 of 2.3 million shares at HK$12.43 each and an initial filing (for the fifth time since September 2012) in April 2016 of 11.65 million shares at HK$12.44 each, which raised its interest by 5 per cent to 5.11 per cent. The stock closed at HK$13.86 on Friday.
CGN Power Co
GIC Private lowered its stake in nuclear power generating stations operator CGN Power Co to below 5 per cent of the issued capital at lower than its initial filing price in August 2015. The group ceased to be a substantial shareholder on February 15 following the sale of 25.38 million shares at HK$2.41 each, which reduced its holdings by 5 per cent to 535.956 million shares or 4.8 per cent. Although GIC Private sold shares this month at lower than its initial filing price in August 2015, the filing was made on the back of the 15 per cent rebound in the share price since December 2016 from HK$2.10. Despite the rebound in the share price, the counter is still down since October 2015 from HK$3.55. The fund manager previously reported an initial filing (for the second time since July 2015) in August 2015 of 2.1 million shares at HK$2.97 each, which raised its interest to 5.01 per cent. The stock closed at HK$2.39 on Friday.
China Sanjiang Fine Chemicals Company
FIL lowered its stake in chemicals producer China Sanjiang Fine Chemicals Company Limited to below 5 per cent of the issued capital at higher than its initial filing price in July 2015. The group ceased to be a substantial shareholder on February 9 following the sale of 333,000 shares at HK$2.73 each, which reduced its holdings to 49.365 million shares or 4.97 per cent. The filing was made on the back of the 75 per cent rebound in the share price since the last week of December 2016 from HK$1.56. The counter is also up since January 2016 from HK$0.74. The group previously reported an initial filing (for the third time) in July 2015 of 457,000 shares at HK$2.42 each, which raised its interest to 5.04 per cent. The stock closed at HK$2.83 on Friday.
Prada SpA
JPMorgan Chase & Co lowered its stake in high-end leather goods, ready-to-wear and footwear manufacturer and distributor Prada SpA to below 5 per cent of the issued capital at higher than its initial filing price in February 2016. The group ceased to be a substantial shareholder on February 10 following the sale of 452,000 shares at HK$32.34 each, which reduced its holdings to 127.646 million shares or 4.98 per cent. The filing was made on the back of the 53 per cent rebound in the share price since August 2016 from HK$21.20. The shareholder previously reported an initial filing in February 2016 of 128.49 million shares at HK$23.47 each, which raised its interest by 1,469 per cent to 5.36 per cent. Also negative this quarter are OppenheimerFunds, Inc and Harris Associates LP. OppenheimerFunds reported a disposal-related filing on January 20 of 6.3 million shares at HK$31.87 each, which lowered its stake to 150.723 million shares or 5.89 per cent. The group previously acquired a net 24.8 million shares from March 2014 to January 2016 at HK$56.17 to HK$23.65 each and an initial filing in March 2014 of 3.86 million shares at HK$55.34 each, which raised its interest to 5.05 per cent. Harris Associates, on the other hand, ceased to be a substantial shareholder on January 13 following the sale of 5.3 million shares at HK$31.93 each, which reduced its holdings to 124.167 million shares or 4.85 per cent. The group previously reported a disposal-related filing in October 2016 of 2.37 million shares at HK$27.63 each and a disposal-related filing in August 2016 of 2.2 million shares at HK$23.96 each. Overall, Harris Associates’ stake is down by 30 per cent since August 2016. Prior to those sales, the shareholder acquired 51 million shares from November 2014 to January 2016 at HK$47.82 to HK$21.32 each and an initial filing in November 2014 of 1.66 million shares at HK$47.76 each, which raised its interest to 5.04 per cent. The stock closed at HK$31.60 on Friday.
Beijing Jingkelong Company
Templeton Asset Management ceased to be a substantial shareholder of H-share convenience store operator Beijing Jingkelong Company on February 10 following the sale of 258,000 shares at HK$1.65 each. The trade reduced its holdings to 8.931 million shares or 4.9 per cent of the issued capital. The group previously sold 3.67 million shares from October 10 to December 16, 2016 at HK$1.63 each. The filings since October 2016 were made on the back of the rebound in the share price since June 2016 from HK$1.50. Prior to its notices in the fourth quarter of 2016, the shareholder reported a disposal-related filing in June 2016 of 50,000 shares at HK$1.54 each and a disposal-related filing in November 2015 of 52,000 shares at HK$2.07 each. Overall, Templeton’s stake is down by 51 per cent since November 2015. Prior to those sales, the fund manager acquired a net 9.2 million shares from May 2009 to November 2013 at HK$9.39 to HK$2.44 each and an initial filing in May 2009 of 563,000 shares at HK$3.46 each, which raised its interest by 7 per cent to 5.01 per cent. The stock closed at HK$1.68 on Friday.
Weichai Power Company
Schroders Plc ceased to be a substantial shareholder of diesel engine manufacturer Weichai Power Company on February 9 following the sale of 568,000 shares at HK$14.31 each. The trade reduced its holdings to 48.346 million shares or 4.98 per cent of the issued capital. The filing was made on the back of the 20 per cent rise in the share price since December 2016 from HK$11.94. The group previously reported a disposal-related filing on November 15, 2016 of 1.576 million shares at HK$12.16 each. Overall, Schroders’ stake is down by 16 per cent since November 2016. Prior to those sales, the fund manager reported a purchase-related filing in October 2016 of 507,000 shares at HK$11.01 each and an initial filing (for the 2nd time since October 2011) on August 26 of 1.753 million shares at HK$9.73 each, which raised its interest to 5.14 per cent. The stock closed at HK$13.88 on Friday.
Robert Halili is managing director of Asia Insider
