Do the institutions own shares of China Bohai Bank Co., Ltd. (HKG: 9668)?
If you want to know who actually controls China Bohai Bank Co., Ltd. (HKG: 9668), then you will need to examine the makeup of its share register. Large companies usually have institutions as shareholders, and we usually see insiders holding shares in smaller companies. Companies that have been privatized tend to have low insider ownership.
China Bohai Bank has a market capitalization of HK $ 52 billion, so it is too big to go unnoticed. We expect institutions and retail investors to own a portion of the company. Our analysis of company ownership, below, shows that institutions own shares in the company. We can zoom in on the different ownership groups, to find out more about China Bohai Bank.
Check out our latest analysis for China Bohai Bank
What does institutional ownership tell us about China Bohai Bank?
Many institutions measure their performance against an index that approximates the local market. Thus, they generally pay more attention to companies that are included in the major indices.
China Bohai Bank already has institutions listed in the share register. Indeed, they hold a respectable stake in the company. This implies that analysts working for these institutions have reviewed the action and appreciate it. But like everyone else, they could be wrong. It is not uncommon to see a sharp drop in the stock price if two large institutional investors attempt to sell a stock at the same time. So it’s worth checking out the past earnings trajectory of China Bohai Bank (below). Of course, keep in mind that there are other factors to consider as well.
We note that hedge funds do not have a significant investment in China Bohai Bank. The main shareholder of the company is TEDA Investment Holding Co., Ltd., with a 20% stake. With respectively 16% and 11% of the shares outstanding, Standard Chartered PLC and COSCO SHIPPING Development Co., Ltd. are the second and third largest shareholders.
Looking further, we found that 57% of the shares are owned by the 4 largest shareholders. In other words, these shareholders have a say in the decisions of the company.
While it makes sense to study a company’s institutional ownership data, it also makes sense to study analysts’ sentiments to know which way the wind is blowing. While there is some coverage from analysts, the company is likely not widely covered. So he might get more attention, down the track.
Insider ownership of China Bohai Bank
The definition of an insider may differ slightly from country to country, but board members still count. The management ultimately reports to the board of directors. However, it is not uncommon for managers to be board members, especially if they are founders or CEOs.
Most view insider ownership as a positive, as it can indicate that the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.
Our data cannot confirm that board members personally own shares. We don’t often see this low level of ownership, and our data may be imperfect. But shareholders can click here to check if any insiders have sold any shares.
General public property
With a 15% stake, the general public has some influence over China Bohai Bank. While this property size may not be enough to influence a policy decision in their favor, they can still have a collective impact on company policies.
Private equity firms hold a 9.5% stake in China Bohai Bank. This suggests that they can influence key policy decisions. Sometimes we see private equity sticking around for the long haul, but generally they have a shorter investment horizon and – as the name suggests – don’t invest much in public companies. After a while, they may seek to sell and redeploy the capital elsewhere.
Owned by a private company
Our data indicates that private companies own 32% of the company’s shares. 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 an individual. While it is difficult to draw general conclusions, it should be noted that this is an additional area of research.
Public enterprise ownership
State-owned enterprises currently own 28% of the shares of China Bohai Bank. It’s hard to say for sure, but it suggests that they have intertwined business interests. This can be a strategic issue, so it’s worth watching this space for changes in ownership.
I find it very interesting to see who exactly owns a company. But to really get an overview, we have to take other information into account as well. Note that China Bohai Bank displays 2 warning signs in our investment analysis , and 1 of them doesn’t go too well with us …
If you’d rather find out what analysts are predicting in terms of future growth, don’t miss this free analyst forecast report.
NB: The figures in this article are calculated from data for the last twelve months, which refer to the 12-month period ending on the last date of the month of date of the financial statement. This may not be consistent with the figures in the annual report for the entire year.
This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative material. Simply Wall St has no position in the mentioned stocks.
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