Chongqing Genrix Biopharmaceutical Co., Ltd.'s (SHSE:688443) 4.8% loss last week hit both individual investors who own 55% as well as institutions

Key Insights

• Significant control over Chongqing Genrix Biopharmaceutical by private equity firms implies that the general public has more power to influence management and governance-related decisions
• The largest shareholder of the company is Chongqing Zhirui Investment Co., Ltd. with a 55% stake
• Institutional ownership in Chongqing Genrix Biopharmaceutical is 17%

A look at the shareholders of Chongqing Genrix Biopharmaceutical Co., Ltd. (SHSE:688443) can tell us which group is most powerful. With 55% stake, private equity firms possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).

While institutions, who own 17% shares weren’t spared from last week’s CN¥499m market cap drop, private equity firms as a group suffered the maximum losses

Let's delve deeper into each type of owner of Chongqing Genrix Biopharmaceutical, beginning with the chart below.

Check out our latest analysis for Chongqing Genrix Biopharmaceutical

What Does The Institutional Ownership Tell Us About Chongqing Genrix Biopharmaceutical?

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 Chongqing Genrix Biopharmaceutical. 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. 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 Chongqing Genrix Biopharmaceutical's earnings history below. Of course, the future is what really matters.

Chongqing Genrix Biopharmaceutical is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is Chongqing Zhirui Investment Co., Ltd. with 55% of shares outstanding. This implies that they have majority interest control of the future of the company. Jikuan Shan is the second largest shareholder owning 4.0% of common stock, and Zhong Ou Fund Management Co., Ltd holds about 3.6% of the company stock.

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 are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of Chongqing Genrix Biopharmaceutical

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.

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 can see that insiders own shares in Chongqing Genrix Biopharmaceutical Co., Ltd.. This is a big company, so it is good to see this level of alignment. Insiders own CN¥649m worth of shares (at current prices). If you would like to explore the question of insider alignment, you can click here to see if insiders have been buying or selling.

General Public Ownership

The general public-- including retail investors -- own 13% stake in the company, and hence can't easily be ignored. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.

Private Equity Ownership

Private equity firms hold a 55% stake in Chongqing Genrix Biopharmaceutical. This suggests they can be influential in key policy decisions. Some investors might be encouraged by this, since private equity are sometimes able to encourage strategies that help the market see the value in the company. Alternatively, those holders might be exiting the investment after taking it public.

Private Company Ownership

Our data indicates that Private Companies hold 8.5%, of the company's shares. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it's hard to draw any broad stroke conclusions, it is worth noting as an area for further research.

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 2 warning signs we've spotted with Chongqing Genrix Biopharmaceutical .

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.