The Insider | Share buying increased during quiet 3-day week in Hong Kong

Buying climbed after trading flat for two straight weeks, based on filings on the Hong Kong Stock Exchange during the holiday-shortened week of May 2 to 5. A total of 25 companies recorded 110 purchases worth HK$105 million.

The 3-day figures were high compared to the previous week’s 5-day totals of 34 firms, 174 purchases and HK$200 million. The selling, on the other hand, fell, with 12 companies that recorded 45 disposals worth HK$88 million. The figures were sharply down from the previous week’s 20 firms, 92 disposals and HK$224 million.

While the buying by directors picked up last week, the buyback activity slipped with 15 companies that posted 52 repurchases worth HK$145 million based on transactions from April 28 to May 4. The number of firms was consistent with the 20 companies in the previous 5-day period while the number of transactions and value were down from the previous week’s 93 repurchases worth HK$3.91 billion.

It was a relatively quiet week with the bulk of the transactions made in small and mid-cap stocks. Among the stocks that recorded significant purchases last week are Shanghai Industrial Urban Development Group, HC International and Minth Group. On the negative side, an executive director of Guotai Junan International unloaded more shares last week at lower prices.

Shanghai Industrial Urban Development Group Limited (563)

Mainland property developer and investor Shanghai Industrial Urban Development Group bought back for the first time since August 2015 with 300,000 shares purchased on May 4 at HK$1.60 each. The trade was made on the back of the 24 per cent drop in the share price since February 16 from HK$2.10. Despite the sharp fall in the share price, the buyback was made at higher than the group’s previous purchase price based on the 250,000 shares that the company acquired in August 2015 at an average of HK$1.23 each. This is the second time that the firm has repurchased shares following the sharp fall in its share price as the buybacks in August 2015 were made after the stock fell by more than 54 per cent from HK$2.69 in May of that year. The counter rebounded sharply following those buybacks to HK$1.53 in October 2016, an increase of 24 per cent. The stock closed at HK$1.64 on Friday.