Chongqing Brewery Co., Ltd.'s (SHSE:600132) market cap dropped CN¥1.7b last week; Public companies bore the brunt

Key Insights

• Significant control over Chongqing Brewery by public companies implies that the general public has more power to influence management and governance-related decisions
• Carlsberg A/S owns 60% of the company
• 17% of Chongqing Brewery is held by Institutions

If you want to know who really controls Chongqing Brewery Co., Ltd. (SHSE:600132), then you'll have to look at the makeup of its share registry. With 60% stake, public companies 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.

And following last week's 4.8% decline in share price, public companies suffered the most losses.

Let's delve deeper into each type of owner of Chongqing Brewery, beginning with the chart below.

Check out our latest analysis for Chongqing Brewery

What Does The Institutional Ownership Tell Us About Chongqing Brewery?

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.

As you can see, institutional investors have a fair amount of stake in Chongqing Brewery. 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 Chongqing Brewery's earnings history below. Of course, the future is what really matters.

Hedge funds don't have many shares in Chongqing Brewery. Looking at our data, we can see that the largest shareholder is Carlsberg A/S with 60% of shares outstanding. This implies that they have majority interest control of the future of the company. The second and third largest shareholders are Hongde Fund Management Co., Ltd. and JP Morgan Asset Management, with an equal amount of shares to their name at 1.8%.

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 Chongqing Brewery

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.

Our data suggests that insiders own under 1% of Chongqing Brewery Co., Ltd. in their own names. Keep in mind that it's a big company, and the insiders own CN¥89k worth of shares. The absolute value might be more important than the proportional share. 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

With a 23% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Chongqing Brewery. 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.

Public Company Ownership

Public companies currently own 60% of Chongqing Brewery stock. It's hard to say for sure but this suggests they have entwined business interests. This might be a strategic stake, so it's worth watching this space for changes in ownership.

Next Steps:

I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. Take risks for example - Chongqing Brewery has 1 warning sign 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.