Kequan Liu Is The Executive Chairman of Greater China Financial Holdings Limited (HKG:431) And Just Spent HK$900k On Shares

By
Simply Wall St
Published
November 07, 2021
SEHK:431
Source: Shutterstock

Potential Greater China Financial Holdings Limited (HKG:431) shareholders may wish to note that the Executive Chairman, Kequan Liu, recently bought HK$900k worth of stock, paying HK$0.18 for each share. However, it only increased shareholding by a small percentage, and it wasn't a huge purchase by absolute value, either.

See our latest analysis for Greater China Financial Holdings

Greater China Financial Holdings Insider Transactions Over The Last Year

In fact, the recent purchase by Executive Chairman Kequan Liu was not their only acquisition of Greater China Financial Holdings shares this year. Earlier in the year, they paid HK$0.19 per share in a HK$1.9m purchase. That means that an insider was happy to buy shares at above the current price of HK$0.18. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. In our view, the price an insider pays for shares is very important. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. The only individual insider to buy over the last year was Kequan Liu.

Kequan Liu bought 25.00m shares over the last 12 months at an average price of HK$0.18. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

insider-trading-volume
SEHK:431 Insider Trading Volume November 8th 2021

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Does Greater China Financial Holdings Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Greater China Financial Holdings insiders own 46% of the company, worth about HK$661m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The Greater China Financial Holdings Insider Transactions Indicate?

It's certainly positive to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Greater China Financial Holdings. One for the watchlist, at least! So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Every company has risks, and we've spotted 1 warning sign for Greater China Financial Holdings you should know about.

Of course Greater China Financial Holdings may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.

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