Private companies invested in Jinneng Holding Shanxi Coal Industry Co.,ltd. (SHSE:601001) copped the brunt of last week's CN¥1.1b market cap decline

Key Insights

• Jinneng Holding Shanxi Coal Industryltd's significant private companies ownership suggests that the key decisions are influenced by shareholders from the larger public
• Shanxi State-owned Capital Operation Co., Ltd. owns 57% of the company
• Institutional ownership in Jinneng Holding Shanxi Coal Industryltd is 12%

Every investor in Jinneng Holding Shanxi Coal Industry Co.,ltd. (SHSE:601001) should be aware of the most powerful shareholder groups. With 59% stake, private companies possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).

And last week, private companies endured the biggest losses as the stock fell by 4.2%.

In the chart below, we zoom in on the different ownership groups of Jinneng Holding Shanxi Coal Industryltd.

Check out our latest analysis for Jinneng Holding Shanxi Coal Industryltd

What Does The Institutional Ownership Tell Us About Jinneng Holding Shanxi Coal Industryltd?

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 Jinneng Holding Shanxi Coal Industryltd 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 Jinneng Holding Shanxi Coal Industryltd, (below). Of course, keep in mind that there are other factors to consider, too.

Jinneng Holding Shanxi Coal Industryltd is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is Shanxi State-owned Capital Operation Co., Ltd. with 57% of shares outstanding. This essentially means that they have extensive influence, if not outright control, over the future of the corporation. With 1.6% and 1.5% of the shares outstanding respectively, Hebei Port Group Co.,Ltd and National Council for Social Security Fund are the second and third largest shareholders.

While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of Jinneng Holding Shanxi Coal Industryltd

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. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.

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.

We note our data does not show any board members holding shares, personally. Not all jurisdictions have the same rules around disclosing insider ownership, and it is possible we have missed something, here. So you can click here learn more about the CEO.

General Public Ownership

The general public-- including retail investors -- own 28% stake in the company, and hence can't easily be ignored. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.

Private Company Ownership

Our data indicates that Private Companies hold 59%, 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:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Consider for instance, the ever-present spectre of investment risk. We've identified 1 warning sign with Jinneng Holding Shanxi Coal Industryltd , and understanding them should be part of your investment process.

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.

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.

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