Individual investors own 33% of China Railway Hi-tech Industry Corporation Limited (SHSE:600528) shares but public companies control 49% of the company

Key Insights

• The considerable ownership by public companies in China Railway Hi-tech Industry indicates that they collectively have a greater say in management and business strategy
• The top 2 shareholders own 53% of the company
• Institutions own 18% of China Railway Hi-tech Industry

To get a sense of who is truly in control of China Railway Hi-tech Industry Corporation Limited (SHSE:600528), it is important to understand the ownership structure of the business. And the group that holds the biggest piece of the pie are public companies with 49% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

And individual investors on the other hand have a 33% ownership in the company.

Let's delve deeper into each type of owner of China Railway Hi-tech Industry, beginning with the chart below.

See our latest analysis for China Railway Hi-tech Industry

What Does The Institutional Ownership Tell Us About China Railway Hi-tech Industry?

Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.

We can see that China Railway Hi-tech Industry does have institutional investors; and they hold a good portion of the company's stock. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of China Railway Hi-tech Industry, (below). Of course, keep in mind that there are other factors to consider, too.

Hedge funds don't have many shares in China Railway Hi-tech Industry. Looking at our data, we can see that the largest shareholder is China Railway Group Limited with 49% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 4.2% and 1.7%, of the shares outstanding, respectively.

A more detailed study of the shareholder registry showed us that 2 of the top shareholders have a considerable amount of ownership in the company, via their 53% stake.

Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. As far as we can tell there isn't analyst coverage of the company, so it is probably flying under the radar.

Insider Ownership Of China Railway Hi-tech Industry

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.

Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.

Our most recent data indicates that insiders own less than 1% of China Railway Hi-tech Industry Corporation Limited. It's a big company, so even a small proportional interest can create alignment between the board and shareholders. In this case insiders own CN¥207k worth of shares. Arguably, recent buying and selling is just as important to consider. You can click here to see if insiders have been buying or selling.

General Public Ownership

The general public, who are usually individual investors, hold a 33% stake in China Railway Hi-tech Industry. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Public Company Ownership

Public companies currently own 49% of China Railway Hi-tech Industry stock. This may be a strategic interest and the two companies may have related business interests. It could be that they have de-merged. This holding is probably worth investigating further.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Like risks, for instance. Every company has them, and we've spotted 2 warning signs for China Railway Hi-tech Industry (of which 1 shouldn't be ignored!) you should know about.

If you would prefer check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, backed by strong financial data.

NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.