The Insider | Directors step in to prop up share prices with some rare first-time purchases amid sell-off
Chief executives of Taste.Gourmet Group and Wisdom Education International record first buys as directors since their companies were listed
The steep price falls in the recent market sell-off dictated most of the insider trading as directors moved in to support their companies’ shares, according to filings to the Hong Kong stock exchange.
Among the stocks that recorded insider buys following sharp fall in share prices were Yuan Heng Gas Holdings, Zhongsheng Group and Taste.Gourmet Group. The sudden drop in education stocks in the mainland last week because of uncertainty in how that sector will be regulated in the future, prompted the heads of China Maple Leaf Educational Systems and Wisdom Education International to buy heavily last week.
Overall, a total of 30 companies recorded 144 purchases worth HK$271 million based on filings on the Hong Kong stock exchange from August 13 to 17. The figures were sharply up from the previous week’s 17 firms, 85 purchases and HK$99 million. Meanwhile, a total of 14 firms posted 66 repurchases worth HK$1.75 billion based on filings from August 10 to 16. The figures were up from the previous five-day totals of 11 companies, 42 trades and HK$1.52 billion.
Buying by directors and listed firms surged last week, but the selling by directors fell with only four companies recording 19 disposals worth HK$131 million. The number of firms and trades were down from the previous week’s six companies and 35 disposals. The sell value, however, was sharply up from the previous week’s sales worth HK$29 million.
Wang Jianqing, chairman and CEO of oil and gas trader Yuan Heng Gas Holdings, recorded his first on-market trades in since September 2017, buying 33.4 million shares from July 27 to 30 at an average of HK$0.72 each. The trades, which accounted for 79 per cent of the stock’s trading volume, increased his holdings to 3.643 billion shares or 55.66 per cent of the issued capital. The purchases were made on the back of the 26 per cent drop in the share price since January from HK$0.96.
