China Resources Beer (Holdings) Executive Chairman of the Board Xiaohai Hou Sells 63% Of Holding

We wouldn't blame China Resources Beer (Holdings) Company Limited (HKG:291) shareholders if they were a little worried about the fact that Xiaohai Hou, the Executive Chairman of the Board recently netted about HK$18m selling shares at an average price of HK$28.04. Probably the most concerning element of the whole transaction is that the disposal amounted to 63% of their entire holding.

We've discovered 2 warning signs about China Resources Beer (Holdings). View them for free.

China Resources Beer (Holdings) Insider Transactions Over The Last Year

In fact, the recent sale by Xiaohai Hou was the biggest sale of China Resources Beer (Holdings) shares made by an insider individual in the last twelve months, according to our records. So what is clear is that an insider saw fit to sell at around the current price of HK$26.75. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.

The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

View our latest analysis for China Resources Beer (Holdings)

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Does China Resources Beer (Holdings) Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. From looking at our data, insiders own HK$37m worth of China Resources Beer (Holdings) stock, about 0.04% of the company. However, it's possible that insiders might have an indirect interest through a more complex structure. We prefer to see high levels of insider ownership.

What Might The Insider Transactions At China Resources Beer (Holdings) Tell Us?

An insider hasn't bought China Resources Beer (Holdings) stock in the last three months, but there was some selling. And there weren't any purchases to give us comfort, over the last year. Insiders own shares, but we're still pretty cautious, given the history of sales. We're in no rush to buy! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing China Resources Beer (Holdings). For example - China Resources Beer (Holdings) has 2 warning signs we think you should be aware of.

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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 of direct interests only, but not derivative transactions or indirect interests.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.