Zhongxing Shenyang Commercial Building Group Co.,Ltd's (SZSE:000715) biggest owners are individual investors who got richer after stock soared 12% last week

Key Insights

• Zhongxing Shenyang Commercial Building GroupLtd's significant individual investors ownership suggests that the key decisions are influenced by shareholders from the larger public
• 52% of the business is held by the top 5 shareholders
• 24% of Zhongxing Shenyang Commercial Building GroupLtd is held by insiders

Every investor in Zhongxing Shenyang Commercial Building Group Co.,Ltd (SZSE:000715) should be aware of the most powerful shareholder groups. And the group that holds the biggest piece of the pie are individual investors with 41% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

Clearly, individual investors benefitted the most after the company's market cap rose by CN¥299m last week.

In the chart below, we zoom in on the different ownership groups of Zhongxing Shenyang Commercial Building GroupLtd.

See our latest analysis for Zhongxing Shenyang Commercial Building GroupLtd

What Does The Lack Of Institutional Ownership Tell Us About Zhongxing Shenyang Commercial Building GroupLtd?

Small companies that are not very actively traded often lack institutional investors, but it's less common to see large companies without them.

There are many reasons why a company might not have any institutions on the share registry. It may be hard for institutions to buy large amounts of shares, if liquidity (the amount of shares traded each day) is low. If the company has not needed to raise capital, institutions might lack the opportunity to build a position. Alternatively, there might be something about the company that has kept institutional investors away. Zhongxing Shenyang Commercial Building GroupLtd might not have the sort of past performance institutions are looking for, or perhaps they simply have not studied the business closely.

Zhongxing Shenyang Commercial Building GroupLtd is not owned by hedge funds. Our data shows that Beijing Fangda International Industrial Investment Co., Ltd. is the largest shareholder with 15% of shares outstanding. With 13% and 10.0% of the shares outstanding respectively, Zexin Fang and Pengxiang Fang are the second and third largest shareholders.

To make our study more interesting, we found that the top 5 shareholders control more than half of the company which implies that this group has considerable sway over the company's decision-making.

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. While there is some analyst coverage, the company is probably not widely covered. So it could gain more attention, down the track.

Insider Ownership Of Zhongxing Shenyang Commercial Building GroupLtd

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.

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.

It seems insiders own a significant proportion of Zhongxing Shenyang Commercial Building Group Co.,Ltd. It has a market capitalization of just CN¥2.8b, and insiders have CN¥679m 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 41% 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.

Private Company Ownership

We can see that Private Companies own 31%, of the shares on issue. 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:

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 3 warning signs with Zhongxing Shenyang Commercial Building GroupLtd (at least 1 which makes us a bit uncomfortable) , and understanding them should be part of your investment process.

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.