Henderson Land chairman Lee Shau-kee unloads shares for first time since 1993

Lee sold 3.63 million shares in Henderson Land from December 1st to 5th, reflecting the first time he has sold his company’s shares in records dating back 24 years

PUBLISHED : Sunday, 10 December, 2017, 1:50pm
UPDATED : Sunday, 10 December, 2017, 10:51pm

The buying rebounded while the selling among directors was flat based on filings on the Hong Kong stock exchange from December 4 to 8.

A total of 69 companies recorded 407 purchases worth HK$555 million (US$71.2 million) versus 11 companies with 27 disposals worth HK$244 million. The buy figures were up from the previous week’s 59 companies, 255 purchases and HK$321 million.

On the selling side, the number of companies was unchanged while the number of trades was down from the previous week’s 37 disposals. The sell value, on the other hand, was sharply up from the previous week’s sales worth HK$64 million.

Aside from directors, the buy-back activity surged with 39 companies that posted 170 repurchases worth HK$496 million based on filings from December 1 to 7. The figures were sharply up from the previous five-day total of 25 firms, 126 trades and HK$231 million.

There were several significant trades last week. Leading the pack was property tycoon Lee Shau-kee as he recorded his first sales in Henderson Land Development Co based on filings since 1993. Lee is chairman of Henderson Land. On the positive side, there were rare purchases in Target Insurance (Holdings), Zhong An Real Estate and CCT Fortis Holdings.

Lee sold 3.63 million shares of Henderson Land from December 1 to 5 at an average of HK$50.04 apiece. The trades reduced his holdings to 2.920 billion shares or 72.99 per cent of the issued capital. He previously acquired 580,000 shares on January 4 at HK$41.41 each. Prior to his trades this year, the chairman acquired 10.9 million shares from November to December 2016 at an average of HK$41.79 each, 28 million shares from January to July at HK$40.38 to HK$50.10 each or an average of HK$44.17 each and 442 million shares from April 2008 to December 2015 at HK$23.40 to HK$58.35 each or an average of HK$43.17 each. The stock closed at HK$48.25 on Friday.

Significant Points

Lee recorded his first disposals in Henderson Land based on filings since 1993

The sales accounted for 24 per cent of the blue chip’s trading volume

The sales were made after the stock rose by 21 per cent from his purchase price in January

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Chiu Sun-ting bought 568,000 shares of motor vehicle insurance Target Insurance from December 4 to 5 at HK$1.01 to 95 HK cents each or an average of 97 HK cents each. Chiu is executive director and co-founder of the company. The trades increased his holdings to 56.818 million shares or 10.9 per cent of the issued capital. The stock closed at 99 HK cents on Friday.

Significant Points

The purchases by Chiu are the first trades by a director of the company since the stock was listed in January 2015

The purchases accounted for 12 per cent of the stock’s trading volume

The purchases were made on the back of a 87 per cent drop in the share price since May 2015

Chiu’s purchase price was lower than the IPO price range of HK$1.20 to HK$1.80

Shi Kancheng bought 2.5 million shares of mainland real estate developer Zhong An Real Estate from December 4 to 6 at an average of 92 HK cents each. Shi is the chairman of the company. The trades increased his holding to 3.272 billion shares or 56.07 per cent of the issued capital. He previously acquired 600,000 shares in September 2009 at HK$1.59 each. The counter closed at 97 HK cents on Friday.

Significant Points

The recent purchases are the Shi’s first on-market trades since 2009

The recent purchases were made after the stock fell by 24 per cent from November 10. Despite the fall in the share price, the counter is still up since February from 30 HK cents

Telecommunications products manufacturer CCT Fortis bought back 2.47 million shares from December 4 to 6 at an average of HK$1.01 each. The group previously acquired 48.9 million shares in December 2009 at HK$1 each and 198.5 million shares in March 2009 at 50 HK cents each. Prior to the buy-backs since 2009, the company acquired 172 million shares from November 1997 to March 2001 at 31.5 HK cents to HK$3.22 each or an average of HK$1.20 each. The counter closed at 99 HK cents on Friday.

Significant Points

The recent buy-backs are the company’s first repurchases since 2009

The recent buy-backs accounted for 46 per cent of the stock’s trading volume

The recent buy-backs were made on the back of the 14 per cent drop in the share price since June from HK$1.17

Robert Halili is managing director of Asia Insider

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