Southchip Semiconductor Technology(Shanghai) Co., Ltd.'s (SHSE:688484) largest shareholders are retail investors who were rewarded as market cap surged CN¥745m last week

Key Insights

• Significant control over Southchip Semiconductor Technology(Shanghai) by retail investors implies that the general public has more power to influence management and governance-related decisions
• A total of 6 investors have a majority stake in the company with 50% ownership
• Insider ownership in Southchip Semiconductor Technology(Shanghai) is 17%

If you want to know who really controls Southchip Semiconductor Technology(Shanghai) Co., Ltd. (SHSE:688484), then you'll have to look at the makeup of its share registry. We can see that retail investors own the lion's share in the company with 33% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

As a result, retail investors collectively scored the highest last week as the company hit CN¥15b market cap following a 5.3% gain in the stock.

In the chart below, we zoom in on the different ownership groups of Southchip Semiconductor Technology(Shanghai).

Check out our latest analysis for Southchip Semiconductor Technology(Shanghai)

What Does The Institutional Ownership Tell Us About Southchip Semiconductor Technology(Shanghai)?

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 Southchip Semiconductor Technology(Shanghai). 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 Southchip Semiconductor Technology(Shanghai)'s earnings history below. Of course, the future is what really matters.

Southchip Semiconductor Technology(Shanghai) is not owned by hedge funds. Chenjie Ruan is currently the largest shareholder, with 17% of shares outstanding. With 12% and 5.9% of the shares outstanding respectively, Shanghai Chenmu Information Technology Partnership Enterprise (Limited Partnership) and Shanghai Integrated Circuit Industry Investment Fund Management Co., Ltd. are the second and third largest shareholders.

We also observed that the top 6 shareholders account for more than half of the share register, with a few smaller shareholders to balance the interests of the larger ones to a certain extent.

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

Insider Ownership Of Southchip Semiconductor Technology(Shanghai)

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. 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.

Our most recent data indicates that insiders own a reasonable proportion of Southchip Semiconductor Technology(Shanghai) Co., Ltd.. Insiders own CN¥2.5b worth of shares in the CN¥15b company. That's quite meaningful. 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, who are usually individual investors, hold a 33% stake in Southchip Semiconductor Technology(Shanghai). While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Private Equity Ownership

With a stake of 11%, private equity firms could influence the Southchip Semiconductor Technology(Shanghai) board. Sometimes we see private equity stick around for the long term, but generally speaking they have a shorter investment horizon and -- as the name suggests -- don't invest in public companies much. After some time they may look to sell and redeploy capital elsewhere.

Private Company Ownership

It seems that Private Companies own 19%, of the Southchip Semiconductor Technology(Shanghai) stock. 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.

Public Company Ownership

It appears to us that public companies own 7.3% of Southchip Semiconductor Technology(Shanghai). 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. For example, we've discovered 2 warning signs for Southchip Semiconductor Technology(Shanghai) (1 can't be ignored!) that you should be aware of before investing here.

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.