Changjiang Publishing & Media Co.,Ltd's (SHSE:600757) largest shareholders are private companies who were rewarded as market cap surged CN¥485m last week

Key Insights

• The considerable ownership by private companies in Changjiang Publishing & MediaLtd indicates that they collectively have a greater say in management and business strategy
• The largest shareholder of the company is Hubei Changjiang Publishing & Media Group Company Limited with a 56% stake
• 17% of Changjiang Publishing & MediaLtd is held by Institutions

A look at the shareholders of Changjiang Publishing & Media Co.,Ltd (SHSE:600757) can tell us which group is most powerful. We can see that private companies own the lion's share in the company with 57% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

As a result, private companies were the biggest beneficiaries of last week’s 4.5% gain.

Let's take a closer look to see what the different types of shareholders can tell us about Changjiang Publishing & MediaLtd.

View our latest analysis for Changjiang Publishing & MediaLtd

What Does The Institutional Ownership Tell Us About Changjiang Publishing & MediaLtd?

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 Changjiang Publishing & MediaLtd. 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 Changjiang Publishing & MediaLtd, (below). Of course, keep in mind that there are other factors to consider, too.

We note that hedge funds don't have a meaningful investment in Changjiang Publishing & MediaLtd. Our data shows that Hubei Changjiang Publishing & Media Group Company Limited is the largest shareholder with 56% of shares outstanding. This implies that they have majority interest control of the future of the company. With 2.4% and 1.7% of the shares outstanding respectively, Central Huijin Asset Management Ltd. and Huatai-PineBridge Fund Management Co., Ltd. are the second and third largest shareholders.

Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. There is some analyst coverage of the stock, but it could still become more well known, with time.

Insider Ownership Of Changjiang Publishing & MediaLtd

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.

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

With a 25% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Changjiang Publishing & MediaLtd. 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

We can see that Private Companies own 57%, of the shares on issue. 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 Changjiang Publishing & MediaLtd , and understanding them should be part of your investment process.

Ultimately the future is most important. You can access this free report on analyst forecasts for the company.

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.