Public companies are Changchun BCHT Biotechnology Co.'s (SHSE:688276) biggest owners and were hit after market cap dropped CN¥438m

Key Insights

• Significant control over Changchun BCHT Biotechnology by public companies implies that the general public has more power to influence management and governance-related decisions
• The top 2 shareholders own 67% of the company
• 32% of Changchun BCHT Biotechnology is held by insiders

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To get a sense of who is truly in control of Changchun BCHT Biotechnology Co. (SHSE:688276), it is important to understand the ownership structure of the business. We can see that public companies own the lion's share in the company with 41% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

While the holdings of public companies took a hit after last week’s 4.5% price drop, insiders with their 32% also suffered.

Let's delve deeper into each type of owner of Changchun BCHT Biotechnology, beginning with the chart below.

View our latest analysis for Changchun BCHT Biotechnology

What Does The Institutional Ownership Tell Us About Changchun BCHT Biotechnology?

Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.

As you can see, institutional investors have a fair amount of stake in Changchun BCHT Biotechnology. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. 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 Changchun BCHT Biotechnology, (below). Of course, keep in mind that there are other factors to consider, too.

Hedge funds don't have many shares in Changchun BCHT Biotechnology. Our data shows that Changchun High-Tech Industry (Group) Co., Ltd. is the largest shareholder with 41% of shares outstanding. For context, the second largest shareholder holds about 25% of the shares outstanding, followed by an ownership of 5.0% by the third-largest shareholder. Wei Kong, who is the second-largest shareholder, also happens to hold the title of Chief Executive Officer.

To make our study more interesting, we found that the top 2 shareholders have a majority ownership in the company, meaning that they are powerful enough to influence the decisions of the company.

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

Insider Ownership Of Changchun BCHT Biotechnology

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.

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 Changchun BCHT Biotechnology Co.. It has a market capitalization of just CN¥9.3b, and insiders have CN¥3.0b worth of shares in their own names. That's quite significant. Most would be pleased to see the board is investing alongside them. You may wish to access this free chart showing recent trading by insiders.

General Public Ownership

The general public-- including retail investors -- own 20% stake in the company, and hence can't easily be ignored. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Public Company Ownership

It appears to us that public companies own 41% of Changchun BCHT Biotechnology. We can't be certain but it is quite possible this is a strategic stake. The businesses may be similar, or work together.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. To that end, you should be aware of the 1 warning sign we've spotted with Changchun BCHT Biotechnology .

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.

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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.