Mobile software provider Meitu makes first buy-backs since listing in 2016

Buying by Hong Kong directors remained high for a second straight week even as selling rose, based on filings to the city’s stock exchange from May 28 to June 1.

A total of 45 companies recorded 255 purchases by directors worth HK$347 million (US$44.2 million) versus 19 firms with 64 disposals worth HK$504 million. The figures were sharply up from the previous week’s four-day totals of 38 companies, 178 purchases and HK$199 million on the buying side and 11 firms, 34 disposals and HK$142 million on the selling side.

While the buying by directors surged last week, the buy-back activity fell with 25 companies recording 108 repurchases worth HK$1.35 billion, based on filings from May 25 to 31. The figures were not far off from the previous four-day totals of 28 firms, 103 trades and HK$1.31 billion.

There were significant trades in technology stock Meitu, property developers Sunac China Holdings and Guangdong Land and home building materials manufacturer China Lesso Group. On the selling side, there was a first-time sale by the founder of pachinko halls provider and operator Dynam Japan Holdings.

Meitu, for the first time since listing in December 2016, bought 32.86 million shares from May 25 to 30 at HK$7.98 to HK$8.78 each or an average of HK$8.42 each. It had announced a voluntary buy-back plan to acquire US$100 million worth of shares from the open market on May 25. The trades, which accounted for 28 per cent of the stock’s trading volume, were made after the price fell by as much as 37 per cent from HK$12.72 in January. The company’s buy-back prices were near the IPO price of HK$8.50.