Investors who take an interest in Greater China Financial Holdings Limited (HKG:431) should definitely note that the Executive Chairman, Kequan Liu, recently paid HK$0.14 per share to buy HK$2.8m worth of the stock. Although the purchase only increased their holding by 1.4%, it is still a solid purchase in our view.

Check out our latest analysis for Greater China Financial Holdings

Greater China Financial Holdings Insider Transactions Over The Last Year

Notably, that recent purchase by Kequan Liu is the biggest insider purchase of Greater China Financial Holdings shares that we've seen in the last year. That means that even when the share price was higher than HK$0.14 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

In the last twelve months Greater China Financial Holdings insiders were buying shares, but not selling. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

Greater China Financial Holdings is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Does Greater China Financial Holdings Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Greater China Financial Holdings insiders own 48% of the company, currently worth about HK$505m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Does This Data Suggest About Greater China Financial Holdings Insiders?

The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss during the last year, which makes us a little cautious. When combined with notable insider ownership, these factors suggest Greater China Financial Holdings insiders are well aligned, and quite possibly think the share price is too low. One for the watchlist, at least! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Greater China Financial Holdings. In terms of investment risks, we've identified 2 warning signs with Greater China Financial Holdings and understanding these should be part of your investment process.

But note: Greater China Financial Holdings may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

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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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.