Private enterprises among the major shareholders of Jiangxi Bank Co., Ltd. (HKG:1916) took a hit after prices fell 6.9% last week
Each investor of Jiangxi Bank Co., Ltd. (HKG: 1916) must know the most powerful shareholder groups. We can see that private companies hold the lion’s share of the company with 45% ownership. That is, the group will benefit the most if the stock goes up (or lose the most if there is a downturn).
And after last week’s 6.9% share price decline, private companies suffered the most losses.
Let’s dive deeper into each type of owner in Jiangxi Bank, starting with the table below.
Check out our latest analysis for Jiangxi Bank
What does institutional ownership tell us about Jiangxi Bank?
Institutional investors typically compare their own returns to the returns of a commonly tracked index. They therefore generally consider buying larger companies that are included in the relevant benchmark.
We see that Jiangxi Bank has institutional investors; and they own a good part of the shares of the company. This may indicate that the company has some degree of credibility in the investment community. However, it is best to be wary of relying on the so-called validation that accompanies institutional investors. They are also sometimes wrong. If multiple institutions change their minds on a stock at the same time, you could see the stock price drop quickly. So it is worth checking out the earnings history of Jiangxi Bank below. Of course, the future is what really matters.
Hedge funds do not have many shares in Jiangxi Bank. Looking at our data, we can see that the major shareholder is Jiangxi Provincial Expressway Investment Group Co., Ltd. with 16% of the shares outstanding. In comparison, the second and third shareholders hold approximately 5.8% and 4.5% of the shares.
A closer look at our ownership figures suggests that the top 11 shareholders hold a combined ownership of 51%, implying that no single shareholder has a majority.
Institutional ownership research is a good way to assess and filter the expected performance of a stock. The same can be obtained by studying the feelings of the analyst. Our information suggests there is no analyst coverage of the stock, so it is likely little known.
Jiangxi Bank Insider Ownership
The definition of company insiders can be subjective and varies from jurisdiction to jurisdiction. Our data reflects individual insiders, capturing at least board members. Management is ultimately responsible to the board of directors. However, it is not uncommon for managers to be members of the management board, especially if they are founders or CEOs.
Insider ownership is positive when it signals that executives think like the true owners of the company. However, strong insider ownership can also give immense power to a small group within the company. This can be negative in certain circumstances.
We can see that insiders hold shares in Jiangxi Bank Co., Ltd. Insiders have a significant stake worth HK$133 million. Most would see this as a real positive. Most would say this shows the alignment of interests between shareholders and the board. Still, it might be worth checking to see if these insiders have sold.
General public property
With a 37% stake, the general public, consisting mainly of individual investors, has some influence over Jiangxi Bank. While this size of ownership may not be enough to sway a policy decision in their favor, they can still have a collective impact on company policies.
Private Company Ownership
It seems that private companies hold 45% of the shares of Jiangxi Bank. Private companies can be related parties. Sometimes insiders have an interest in a public company through a stake in a private company, rather than in their own capacity as individuals. Although it is difficult to draw general conclusions, it should be noted that this is an area for further research.
Ownership of a public company
SOEs currently own 3.6% of Jiangxi Bank’s shares. It may be a strategic interest and both companies may have related business interests. They may have separated. This exploitation probably deserves further investigation.
It is always useful to think about the different groups that own shares in a company. But to better understand Jiangxi Bank, we need to consider many other factors. Take risks for example – Jiangxi Bank has 4 warning signs (and 2 that can’t be ignored) that we think you should know about.
Sure this may not be the best stock to buy. So take a look at this free free list of interesting companies.
NB: The figures in this article are calculated using trailing twelve month data, which refers to the 12 month period ending on the last day of the month in which the financial statements are dated. This may not be consistent with the annual report figures for the full year.
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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.