WEIGAO GROUP (HKEX: 01066) shares are trading higher, gaining over 3% in today's session. At the time of writing, the stock is up 3.04% to HK$3.39, with a turnover of approximately HK$47.15 million.

The upward movement follows a company announcement regarding share purchases by its controlling shareholder. According to a filing on June 5th, the company's board was informed that its controlling shareholder, Weigao Group, acquired a total of 11.4008 million H-shares in the open market using its own funds between May 15th and the date of the announcement. This purchase represents approximately 0.25% of the company's total issued H-shares and 0.25% of the total issued share capital.

Furthermore, from May 13th to the announcement date, Weigao Group has purchased a cumulative total of 14.9536 million H-shares. This larger tranche equates to roughly 0.33% of the issued H-shares and 0.33% of the total issued share capital, with a total consideration of about HK$50.9 million.

Following these latest acquisitions, Weigao Group now holds a total of 2.115 billion H-shares in the company as of the announcement date. This stake represents approximately 46.76% of the total issued H-shares and 46.27% of the company's total issued share capital.

The share purchases are seen as a strong signal of confidence. The company stated that the actions by the controlling shareholder demonstrate its firm belief in the group's long-term development prospects and intrinsic value, as well as its full support for the group's continued and steady growth.