Shenzhen China Bicycle Company (Holdings) Limited's (SZSE:000017) biggest owners are retail investors who got richer after stock soared 9.5% last week

Key Insights

• The considerable ownership by retail investors in Shenzhen China Bicycle Company (Holdings) indicates that they collectively have a greater say in management and business strategy
• 45% of the business is held by the top 16 shareholders
• Institutional ownership in Shenzhen China Bicycle Company (Holdings) is 14%

To get a sense of who is truly in control of Shenzhen China Bicycle Company (Holdings) Limited (SZSE:000017), it is important to understand the ownership structure of the business. And the group that holds the biggest piece of the pie are retail investors with 55% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

As a result, retail investors were the biggest beneficiaries of last week’s 9.5% gain.

In the chart below, we zoom in on the different ownership groups of Shenzhen China Bicycle Company (Holdings).

Check out our latest analysis for Shenzhen China Bicycle Company (Holdings)

What Does The Institutional Ownership Tell Us About Shenzhen China Bicycle Company (Holdings)?

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.

Shenzhen China Bicycle Company (Holdings) already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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. 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 Shenzhen China Bicycle Company (Holdings)'s earnings history below. Of course, the future is what really matters.

Hedge funds don't have many shares in Shenzhen China Bicycle Company (Holdings). Wansheng Industrial Holdings (Shenzhen) Co., Ltd. is currently the company's largest shareholder with 20% of shares outstanding. In comparison, the second and third largest shareholders hold about 9.2% and 5.9% of the stock.

Our studies suggest that the top 16 shareholders collectively control less than half of the company's shares, meaning that the company's shares are widely disseminated and there is no dominant shareholder.

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. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.

Insider Ownership Of Shenzhen China Bicycle Company (Holdings)

The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. 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.

I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.

Shareholders would probably be interested to learn that insiders own shares in Shenzhen China Bicycle Company (Holdings) Limited. In their own names, insiders own CN¥46m worth of stock in the CN¥3.3b company. This shows at least some alignment. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public -- including retail investors -- own 55% of Shenzhen China Bicycle Company (Holdings). This size of ownership gives investors from the general public some collective power. They can and probably do influence decisions on executive compensation, dividend policies and proposed business acquisitions.

Private Company Ownership

Our data indicates that Private Companies hold 30%, of the company's shares. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Shenzhen China Bicycle Company (Holdings) better, we need to consider many other factors.

I like to dive deeper into how a company has performed in the past. You can find historic revenue and earnings in this detailed graph.

Of course this may not be the best stock to buy. Therefore, you may wish to see our free collection of interesting prospects boasting favorable financials.

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.

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

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.