Chinese property developer Longfor Group said that its controlling shareholder Charm Talent bought 3 million shares of the company on Tuesday, at an average price of HK$10.48 apiece, worth a total of HK$31.44 million, according to a filing to the Hong Kong Stock Exchange.
Charm Talent also bought $2.8 million worth of senior notes, it said.
After the share purchases, Charm Talent held 2.729 billion of Longfor shares, accounting for 43.45% of the total issued share capital, compared to 2.726 billion share and 43.41% before the purchase, showed the filing.
Longfor Group’s shares gained 8.2% to close at HK$10.82 on Tuesday, after slumping 23.8% one day earlier. The sell-off came after Longfor chairwoman Wu Yajun’s surprising resignation, which triggered panic sales amid mounting investor concerns about home builders considered relatively healthy. The company’s three onshore bonds shed at least 20% on Monday.
Wu resigned her posts as executive director, chairperson of the board and a few other roles “due to her age and health reasons”, according to an exchange filing late on Friday.
Longfor said on Monday that it redeemed a syndicated loan of HK$5.1 billion due in 2023.
