The market capitalization of China South City Holdings Limited (HKG:1668) increased by HK$405 million last week; retail investors who own 48% benefited, as did insiders

To get an idea of ​​who really controls China South City Holdings Limited (HKG:1668), it is important to understand the ownership structure of the company. With a 48% stake, individual investors hold the most shares in the company. That is, the group will benefit the most if the stock goes up (or lose the most if there is a downturn).

Retail investors gained the most after the market capitalization hit HK$5.5 billion last week, while insiders who hold 36% also benefited.

Let’s take a closer look at what different types of shareholders can tell us about China South City Holdings.

Check out our latest analysis for China South City Holdings

SEHK: 1668 Ownership Breakdown April 2, 2022

What does institutional ownership tell us about China South City Holdings?

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it is included in a major index. We would expect most companies to have some institutions listed, especially if they are growing.

Less than 5% of China South City Holdings is owned by institutional investors. This suggests that some funds have the company in their sights, but many have yet to buy shares. If the company strengthens from here, we could see a situation where more institutions are eager to buy. It is not uncommon to see a sharp rise in the stock price if several institutional investors attempt to buy a stock at the same time. So check out the historical earnings trajectory below, but keep in mind that it’s the future that matters most.

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SEHK: 1668 Profit and Revenue Growth April 2, 2022

China South City Holdings is not owned by hedge funds. Our data suggests that Chung Hing Cheng, who is also the company’s Top Key Executive, owns the most shares at 29%. When an insider owns a significant amount of stock in a company, investors view it as a positive sign, as it suggests that insiders are willing to tie their wealth to the future of the company. With 12% and 7.3% of shares outstanding, respectively, Tencent Holdings Limited and Tai Po Cheng are the second and third largest shareholders. Interestingly, the third-largest shareholder, Tai Po Cheng, is also a member of the board, again indicating strong insider ownership among the company’s major shareholders.

Our research also shed light on the fact that around 50% of the company is controlled by the top 5 shareholders, suggesting that these owners wield significant influence over the company.

While studying the institutional ownership of a company can add value to your research, it is also recommended that you research analyst recommendations to better understand a stock’s expected performance. There is some analyst coverage of the stock, but it could still become better known over time.

Insider ownership of China South City Holdings

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. The management of the company answers to the board of directors and the latter must represent the interests of the shareholders. In particular, sometimes the senior executives themselves sit on the board of directors.

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.

Our most recent data indicates that insiders own a reasonable proportion of China South City Holdings Limited. Its market capitalization is only HK$5.5 billion and insiders hold HK$2.0 billion worth of shares in their own name. It’s great to see insiders so invested in the company. It might be worth checking to see if these insiders have bought recently.

General public property

The general public, including retail investors, owns 48% of the company’s shares and therefore cannot be easily ignored. Although this group may not necessarily make the decisions, they can certainly have a real influence on the way the business is run.

Ownership of a public company

State-owned enterprises currently own 12% of the shares of China South City Holdings. We cannot be sure, but it is quite possible that it is a strategic issue. Businesses can be similar or work together.

Next steps:

It is always useful to think about the different groups that own shares in a company. But to better understand China South City Holdings, we need to consider many other factors. To do this, you need to find out about the 3 warning signs we spotted with China South City Holdings (including 1 that is significant).

But finally it’s the future, not the past, which will determine the performance of the owners of this company. Therefore, we think it’s advisable to take a look at this free report showing whether analysts are predicting a brighter future.

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.

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.

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