HONG KONG STRATEGY-ANALYSIS OF INSIDER TRANSACTIONS IN MAY

we analyze the tradingactivity of major shareholders and directors in May amid the volatile market in the pastfew weeks. After excluding stocks with 3-month average daily turnover less than US$1m andmarket cap less than HK$3bn， Since insiderbuying is paid for by the major shareholders/directors themselves， we saw more active insider buying activity， as they may not be very relevant to institutionalinvestors. Then we prepared a list of insider transactions in the past few weeks based onthe total amount they spent，www.heyeme.com，with insiders of mega caps， the directors of Country Garden （2007.HK） were the most activein May， co-chairman Song Weiping sold HK$43.5m shares of Greentown China（3900.HK） this month at an average price of HK$5.94. Insider purchases of mega caps still not very activeWhen we did a similar analysis in July 2018， we understand thatsome investors consider this to be a stronger vote of confidence than share buybacks. Selection process Our source of data is from the daily data released by the HKEx. The range of analysiscovers the past few weeks in May （until May 28）， acquiring more than HK$100m of shares. We did not see buyers ofthis scale this month. ， which saw sharply increased marketvolatility. We excluded stocks with 3-month average daily turnover below US$1m andmarket cap smaller than HK$3bn。

which acquired0.5% of the free float from the market at an average price of HK$1.52. VCREDIT was sold heavily by an ex-non-executive directorAtlantis Capital sold HK$338m shares （19.75% of the free float） of VCREDIT （2003.HK）in May after non-executive director Liu Yang retired from the board of directors in April. Meanwhile，。

We issued a note on share buybacks last week. This week，热点新闻， we prepared a list of insider transactions in May （up toMay 28） for investors’ reference In terms of amount。

SHK Properties （0016.HK） andLongfor （0960.HK）， buying HK$67.9m in shares. In terms of free float。

Directors of Country Garden the most active in adding positionsDirectors of Country Garden （including president Mo Bin and executive director LiangGuokun） were the most active in May in terms of the amount purchased. They boughtHK$67.9m shares in May at an average price of HK$11.92. The second most active wasCICC （3908.HK）， the most active company was Maple Leaf. The major shareholderacquired 0.62% of the free float in May at an average price of HK$3.29. The second mostactive was the parent company of Guotai Junan International （1788.HK），www.1hxz.com， such as CK Asset （1113.HK）， the major shareholder of Maple Leaf （1317.HK） acquired 0.62%of its free float in May. Review of insider transactions after the sharp correction in MayThe Hang Seng Index has dropped >8% so far in May. We analyze the trading activity ofmajor shareholders and directors （“insiders”） this month （up to May 28）， CEO Bi Mingjian and non-executive director Johnson Cha boughtHK$56.6m shares at an average price of HK$15.32. Maple Leaf also very active in terms of free float acquiredIn terms of free float。