There is an insider effort to buy or sell into the shares of LVGEM (China) Real Estate Investment Company Limited. News reported by Simply Wall St provided sound analysis of insider transactions in the company, including purchases per share.
A brief explanation of insider transactions was shown, where company insiders-such as stockholders and board members-sold and bought a stock within the company. In the case of LVGEM, the biggest insiders were from Hong King Wong, which bought an estimated HK$235 million shares (US$300 million). The shares were said to have been priced above market at around HK$2.94 per share.
There are two takeaways in that it's possible they'll come to regret the purchase sometime in the future. However, it could also be likely that they have high hopes about the said company. Hong King Wong was, notably, the only insider to have traded in the form of buying for the last twelve months. They were also active as a seller, selling HK$235 million shares in that period.
It's nothing new for Chinese investments. The actions of Hong King Wong only prove that LVGEM have been doing fine for some period of time. It also shows that Chinese investments could well be on its way to being kept inside the country. In contrast, most investors are directing their cash outside of the country.
Business Insider reported that, since January 1, 2017, the Chinese government has been trying to curb outside investments, encouraging people to instead keep money flows within the country. It's been easier said than done so far, with Chinese individuals spending 25% less on overseas properties last year. It might have gone down, but the fact remains that people are still spending on properties outside the country.
The length of time it takes to complete purchases haven't waned interest in Chinese-purchased US property. Most of these Chinese look to upgrade the future of their families, and they see the US as a 'stable society' where their children and families have more access to a better future.
With this in mind, it's definitely encouraging to see the activity within insider spending and buying stocks in local companies. It paints a picture of trust and confidence in companies that are located right within the mainland, as well as compliance towards rules that are only created for the benefit of Chinese residents.