Harbin Electric Corporation Jiamusi Electric Machine CO.,Ltd's (SZSE:000922) market cap dropped CN¥679m last week; Retail investors bore the brunt

Key Insights

• Significant control over Harbin Electric Corporation Jiamusi Electric MachineLtd by retail investors implies that the general public has more power to influence management and governance-related decisions
• A total of 11 investors have a majority stake in the company with 50% ownership
• 14% of Harbin Electric Corporation Jiamusi Electric MachineLtd is held by Institutions

If you want to know who really controls Harbin Electric Corporation Jiamusi Electric Machine CO.,Ltd (SZSE:000922), then you'll have to look at the makeup of its share registry. We can see that retail investors own the lion's share in the company with 46% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

As market cap fell to CN¥7.5b last week, retail investors would have faced the highest losses than any other shareholder groups of the company.

In the chart below, we zoom in on the different ownership groups of Harbin Electric Corporation Jiamusi Electric MachineLtd.

View our latest analysis for Harbin Electric Corporation Jiamusi Electric MachineLtd

What Does The Institutional Ownership Tell Us About Harbin Electric Corporation Jiamusi Electric MachineLtd?

Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.

As you can see, institutional investors have a fair amount of stake in Harbin Electric Corporation Jiamusi Electric MachineLtd. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at Harbin Electric Corporation Jiamusi Electric MachineLtd's earnings history below. Of course, the future is what really matters.

We note that hedge funds don't have a meaningful investment in Harbin Electric Corporation Jiamusi Electric MachineLtd. Harbin Electric Corporation is currently the company's largest shareholder with 26% of shares outstanding. With 11% and 3.0% of the shares outstanding respectively, Jiamusi Electrical Motor Factory Co,. Ltd. and National Council for Social Security Fund are the second and third largest shareholders.

A closer look at our ownership figures suggests that the top 11 shareholders have a combined ownership of 50% implying that no single shareholder has a majority.

While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of Harbin Electric Corporation Jiamusi Electric MachineLtd

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.

Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.

We can see that insiders own shares in Harbin Electric Corporation Jiamusi Electric Machine CO.,Ltd. This is a big company, so it is good to see this level of alignment. Insiders own CN¥166m worth of shares (at current prices). It is good to see this level of investment by insiders. You can check here to see if those insiders have been buying recently.

General Public Ownership

With a 46% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Harbin Electric Corporation Jiamusi Electric MachineLtd. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Private Company Ownership

It seems that Private Companies own 38%, of the Harbin Electric Corporation Jiamusi Electric MachineLtd stock. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it's hard to draw any broad stroke conclusions, it is worth noting as an area for further research.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Harbin Electric Corporation Jiamusi Electric MachineLtd better, we need to consider many other factors. Take risks for example - Harbin Electric Corporation Jiamusi Electric MachineLtd has 2 warning signs we think you should be aware of.

But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter future.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com