Tongyi Carbon Neutral Technology (Xinjiang) Co., Ltd's (SHSE:600506) market cap surged CN¥636m last week, individual investors who have a lot riding on the company were rewarded

Key Insights

• Significant control over Tongyi Carbon Neutral Technology (Xinjiang) by individual investors implies that the general public has more power to influence management and governance-related decisions
• The top 8 shareholders own 42% of the company
• Institutions own 10% of Tongyi Carbon Neutral Technology (Xinjiang)

A look at the shareholders of Tongyi Carbon Neutral Technology (Xinjiang) Co., Ltd (SHSE:600506) can tell us which group is most powerful. The group holding the most number of shares in the company, around 58% to be precise, is individual investors. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Clearly, individual investors benefitted the most after the company's market cap rose by CN¥636m last week.

Let's take a closer look to see what the different types of shareholders can tell us about Tongyi Carbon Neutral Technology (Xinjiang).

See our latest analysis for Tongyi Carbon Neutral Technology (Xinjiang)

What Does The Institutional Ownership Tell Us About Tongyi Carbon Neutral Technology (Xinjiang)?

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 Tongyi Carbon Neutral Technology (Xinjiang). 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. 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 Tongyi Carbon Neutral Technology (Xinjiang), (below). Of course, keep in mind that there are other factors to consider, too.

Tongyi Carbon Neutral Technology (Xinjiang) is not owned by hedge funds. The company's largest shareholder is Shenzhen CCB Investment Development Co., Ltd., with ownership of 23%. Meanwhile, the second and third largest shareholders, hold 9.4% and 9.0%, of the shares outstanding, respectively.

On studying our ownership data, we found that 8 of the top shareholders collectively own less than 50% of the share register, implying that no single individual has a majority interest.

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. As far as we can tell there isn't analyst coverage of the company, so it is probably flying under the radar.

Insider Ownership Of Tongyi Carbon Neutral Technology (Xinjiang)

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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 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, mostly comprising of individual investors, collectively holds 58% of Tongyi Carbon Neutral Technology (Xinjiang) shares. 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 32%, of the company's shares. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private 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. Case in point: We've spotted 2 warning signs for Tongyi Carbon Neutral Technology (Xinjiang) you should be aware of, and 1 of them can't be ignored.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.