THE intensive stock reduction by top executives at Brilliance China Automotive Holdings Ltd has caused a 10 percent decline in its stock price since mid-January, leading to concerns that the Chinese partner of BMW may be overvalued.

According to a Hong Kong stock exchange filing, Qi Yumin, chief executive officer of Brilliance Auto, has reduced his stake three times since January 11 by a total of 4.5 million shares - cashing in nearly HK$40 million (US$5.2 million).

Also during January 11 to 13, other top executives, including Chairman Wu Xiaoan, offloaded 2.25 million shares for HK$20.43 million, while Lei Xiaoyang, non-executive director, gained HK$905,000 through the sale of 100,000 shares.

The stock reduction has been widely followed by independent investors from January 18 when the news was made public, causing its share price to plunge 9 percent to HK$7.90.

Industry analysts said the stake cut by Brilliance Auto's top management potentially suggests that management believes the share price has peaked in the near term.

Brilliance Auto has been upbeat over the past few years as its performance was boosted by booming sales of Chinese-made BMW cars with expanded product offerings.

Brilliance Auto yesterday rose 3.1 percent to HK$8.38 in Hong Kong trading.