Retail investors are China Tourism And Culture Investment Group Co.,Ltd's (SHSE:600358) biggest owners and were rewarded after market cap rose by CN¥258m last week

Key Insights

• China Tourism And Culture Investment GroupLtd's significant retail investors ownership suggests that the key decisions are influenced by shareholders from the larger public
• 49% of the business is held by the top 13 shareholders
• Using data from company's past performance alongside ownership research, one can better assess the future performance of a company

Every investor in China Tourism And Culture Investment Group Co.,Ltd (SHSE:600358) should be aware of the most powerful shareholder groups. With 51% stake, retail investors possess the maximum shares in the company. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Clearly, retail investors benefitted the most after the company's market cap rose by CN¥258m last week.

Let's take a closer look to see what the different types of shareholders can tell us about China Tourism And Culture Investment GroupLtd.

See our latest analysis for China Tourism And Culture Investment GroupLtd

What Does The Institutional Ownership Tell Us About China Tourism And Culture Investment GroupLtd?

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 China Tourism And Culture Investment GroupLtd. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see China Tourism And Culture Investment GroupLtd's historic earnings and revenue below, but keep in mind there's always more to the story.

We note that hedge funds don't have a meaningful investment in China Tourism And Culture Investment GroupLtd. Jiangxi Tourism Group Co., Ltd. is currently the company's largest shareholder with 20% of shares outstanding. The second and third largest shareholders are Sichuan Trust Co., Ltd. and Sichuan Trust Co., Ltd, Asset Management Arm, with an equal amount of shares to their name at 5.0%.

Our studies suggest that the top 13 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. We're not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.

Insider Ownership Of China Tourism And Culture Investment GroupLtd

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.

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.

Our most recent data indicates that insiders own some shares in China Tourism And Culture Investment Group Co.,Ltd. It has a market capitalization of just CN¥2.1b, and insiders have CN¥37m worth of shares, in their own names. It is good to see some investment by insiders, but it might be worth checking if those insiders have been buying.

General Public Ownership

The general public -- including retail investors -- own 51% of China Tourism And Culture Investment GroupLtd. This level of ownership gives investors from the wider public some power to sway key policy decisions such as board composition, executive compensation, and the dividend payout ratio.

Private Company Ownership

Our data indicates that Private Companies hold 37%, of the company's shares. 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 China Tourism And Culture Investment GroupLtd better, we need to consider many other factors. Case in point: We've spotted 1 warning sign for China Tourism And Culture Investment GroupLtd you should be aware of.

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.

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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.