Retail investors are China Bester Group Telecom Co., Ltd.'s (SHSE:603220) biggest owners and were hit after market cap dropped CN¥472m

Key Insights

• The considerable ownership by retail investors in China Bester Group Telecom indicates that they collectively have a greater say in management and business strategy
• 43% of the business is held by the top 25 shareholders
• Insiders own 32% of China Bester Group Telecom

Every investor in China Bester Group Telecom Co., Ltd. (SHSE:603220) should be aware of the most powerful shareholder groups. With 56% stake, retail investors possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).

While insiders, who own 32% shares weren’t spared from last week’s CN¥472m market cap drop, retail investors as a group suffered the maximum losses

Let's delve deeper into each type of owner of China Bester Group Telecom, beginning with the chart below.

Check out our latest analysis for China Bester Group Telecom

What Does The Institutional Ownership Tell Us About China Bester Group Telecom?

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.

China Bester Group Telecom already has institutions on the share registry. Indeed, they own a respectable stake in the company. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. 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 China Bester Group Telecom's earnings history below. Of course, the future is what really matters.

Hedge funds don't have many shares in China Bester Group Telecom. The company's CEO Liubing Li is the largest shareholder with 22% of shares outstanding. The second and third largest shareholders are Hainan Jingge Private Fund Management Partnership Enterprise (Limited Partnership) and Man Mei, with an equal amount of shares to their name at 5.1%.

A deeper look at our ownership data shows that the top 25 shareholders collectively hold less than half of the register, suggesting a large group of small holders where no single shareholder has a majority.

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. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.

Insider Ownership Of China Bester Group Telecom

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.

It seems insiders own a significant proportion of China Bester Group Telecom Co., Ltd.. It is very interesting to see that insiders have a meaningful CN¥2.8b stake in this CN¥8.8b business. Most would say this shows a good degree of alignment with shareholders, especially in a company of this size. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public -- including retail investors -- own 56% of China Bester Group Telecom. With this amount of ownership, retail investors can collectively play a role in decisions that affect shareholder returns, such as dividend policies and the appointment of directors. They can also exercise the power to vote on acquisitions or mergers that may not improve profitability.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Case in point: We've spotted 2 warning signs for China Bester Group Telecom you should be aware of.

Of course this may not be the best stock to buy. So take a peek at this free free list of interesting companies.

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.