Retail investors invested in Jiangyin Haida Rubber And Plastic Co., Ltd. (SZSE:300320) copped the brunt of last week's CN¥397m market cap decline

Key Insights

• Significant control over Jiangyin Haida Rubber And Plastic by retail investors implies that the general public has more power to influence management and governance-related decisions
• 48% of the business is held by the top 25 shareholders
• Insider ownership in Jiangyin Haida Rubber And Plastic is 40%

If you want to know who really controls Jiangyin Haida Rubber And Plastic Co., Ltd. (SZSE:300320), then you'll have to look at the makeup of its share registry. The group holding the most number of shares in the company, around 52% to be precise, is retail investors. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

While insiders who own 40% came under pressure after market cap dropped to CN¥5.6b last week,retail investors took the most losses.

In the chart below, we zoom in on the different ownership groups of Jiangyin Haida Rubber And Plastic.

Check out our latest analysis for Jiangyin Haida Rubber And Plastic

What Does The Institutional Ownership Tell Us About Jiangyin Haida Rubber And Plastic?

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 Jiangyin Haida Rubber And Plastic. 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. 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 Jiangyin Haida Rubber And Plastic's historic earnings and revenue below, but keep in mind there's always more to the story.

Jiangyin Haida Rubber And Plastic is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is the CEO Zhenyu Qian with 20% of shares outstanding. Yanyun Qian is the second largest shareholder owning 9.6% of common stock, and Minhua Sun holds about 4.4% of the company stock.

A deeper look at our ownership data shows that the top 25 shareholders collectively hold less than half of the register, suggesting a large group of small holders where no single shareholder has a majority.

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. 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 Jiangyin Haida Rubber And Plastic

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. 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 Jiangyin Haida Rubber And Plastic Co., Ltd.. It has a market capitalization of just CN¥5.6b, and insiders have CN¥2.2b worth of shares in their own names. This may suggest that the founders still own a lot of shares. You can click here to see if they have been buying or selling.

General Public Ownership

The general public -- including retail investors -- own 52% of Jiangyin Haida Rubber And Plastic. With this amount of ownership, retail investors can collectively play a role in decisions that affect shareholder returns, such as dividend policies and the appointment of directors. They can also exercise the power to vote on acquisitions or mergers that may not improve profitability.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Jiangyin Haida Rubber And Plastic better, we need to consider many other factors. Be aware that Jiangyin Haida Rubber And Plastic is showing 2 warning signs in our investment analysis , and 1 of those is a bit concerning...

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.