Private companies invested in Asia Cuanon Technology (Shanghai) Co.,Ltd. (SHSE:603378) copped the brunt of last week's CN¥484m market cap decline

Key Insights

• Significant control over Asia Cuanon Technology (Shanghai)Ltd by private companies implies that the general public has more power to influence management and governance-related decisions
• 57% of the business is held by the top 4 shareholders
• 15% of Asia Cuanon Technology (Shanghai)Ltd is held by insiders

A look at the shareholders of Asia Cuanon Technology (Shanghai) Co.,Ltd. (SHSE:603378) can tell us which group is most powerful. With 52% stake, private companies possess the maximum shares in the company. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

And following last week's 17% decline in share price, private companies suffered the most losses.

Let's delve deeper into each type of owner of Asia Cuanon Technology (Shanghai)Ltd, beginning with the chart below.

Check out our latest analysis for Asia Cuanon Technology (Shanghai)Ltd

What Does The Institutional Ownership Tell Us About Asia Cuanon Technology (Shanghai)Ltd?

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.

We can see that Asia Cuanon Technology (Shanghai)Ltd 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. 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 Asia Cuanon Technology (Shanghai)Ltd's earnings history below. Of course, the future is what really matters.

Asia Cuanon Technology (Shanghai)Ltd is not owned by hedge funds. Shanghai Chuangnengming Investment Co., Ltd. is currently the company's largest shareholder with 27% of shares outstanding. In comparison, the second and third largest shareholders hold about 12% and 9.7% of the stock. Jinzhong Li, who is the second-largest shareholder, also happens to hold the title of Chief Executive Officer.

On looking further, we found that 57% of the shares are owned by the top 4 shareholders. In other words, these shareholders have a meaningful say in the decisions of the company.

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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of Asia Cuanon Technology (Shanghai)Ltd

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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.

It seems insiders own a significant proportion of Asia Cuanon Technology (Shanghai) Co.,Ltd.. Insiders have a CN¥384m stake in this CN¥2.5b business. We would say this shows alignment with shareholders, but it is worth noting that the company is still quite small; some insiders may have founded the business. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public, who are usually individual investors, hold a 25% stake in Asia Cuanon Technology (Shanghai)Ltd. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Private Company Ownership

It seems that Private Companies own 52%, of the Asia Cuanon Technology (Shanghai)Ltd stock. 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 Asia Cuanon Technology (Shanghai)Ltd better, we need to consider many other factors. Consider risks, for instance. Every company has them, and we've spotted 3 warning signs for Asia Cuanon Technology (Shanghai)Ltd you should know about.

If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.

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.