Private companies among Changjiang Publishing & Media Co.,Ltd's (SHSE:600757) largest shareholders, saw gain in holdings value after stock jumped 4.7% last week

Key Insights

• Significant control over Changjiang Publishing & MediaLtd by private companies implies that the general public has more power to influence management and governance-related decisions
• Hubei Changjiang Publishing & Media Group Company Limited owns 56% of the company
• Institutions own 18% of Changjiang Publishing & MediaLtd

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To get a sense of who is truly in control of Changjiang Publishing & Media Co.,Ltd (SHSE:600757), it is important to understand the ownership structure of the business. We can see that private companies own the lion's share in the company with 57% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

As a result, private companies collectively scored the highest last week as the company hit CN¥11b market cap following a 4.7% gain in the stock.

In the chart below, we zoom in on the different ownership groups of Changjiang Publishing & MediaLtd.

View our latest analysis for Changjiang Publishing & MediaLtd

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

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.

We can see that Changjiang Publishing & MediaLtd does have institutional investors; and they hold a good portion of the company's stock. 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. 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 Changjiang Publishing & MediaLtd's earnings history below. Of course, the future is what really matters.

We note that hedge funds don't have a meaningful investment in Changjiang Publishing & MediaLtd. Hubei Changjiang Publishing & Media Group Company Limited is currently the company's largest shareholder with 56% of shares outstanding. This implies that they have majority interest control of the future of the company. For context, the second largest shareholder holds about 2.4% of the shares outstanding, followed by an ownership of 1.7% by the third-largest shareholder.

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 is a little analyst coverage of the stock, but not much. So there is room for it to gain more coverage.

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.

Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.

Our data cannot confirm that board members are holding shares personally. Given we are not picking up on insider ownership, we may have missing data. Therefore, it would be interesting to assess the CEO compensation and tenure, here.

General Public Ownership

The general public-- including retail investors -- own 24% stake in the company, and hence can't easily be ignored. 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

Our data indicates that Private Companies hold 57%, 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:

It's always worth thinking about the different groups who own shares in a company. But to understand Changjiang Publishing & MediaLtd better, we need to consider many other factors. Take risks for example - Changjiang Publishing & MediaLtd has 1 warning sign we think you should be aware of.

If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its 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.