China Three Gorges Renewables (Group) Co.,Ltd.'s (SHSE:600905) top owners are private companies with 58% stake, while 23% is held by individual investors

Key Insights

• Significant control over China Three Gorges Renewables (Group)Ltd by private companies implies that the general public has more power to influence management and governance-related decisions
• 53% of the business is held by the top 2 shareholders
• Institutions own 17% of China Three Gorges Renewables (Group)Ltd

Every investor in China Three Gorges Renewables (Group) Co.,Ltd. (SHSE:600905) should be aware of the most powerful shareholder groups. And the group that holds the biggest piece of the pie are private companies with 58% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

And individual investors on the other hand have a 23% ownership in the company.

Let's take a closer look to see what the different types of shareholders can tell us about China Three Gorges Renewables (Group)Ltd.

Check out our latest analysis for China Three Gorges Renewables (Group)Ltd

What Does The Institutional Ownership Tell Us About China Three Gorges Renewables (Group)Ltd?

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.

We can see that China Three Gorges Renewables (Group)Ltd does have institutional investors; and they hold a good portion of the company's stock. 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 China Three Gorges Renewables (Group)Ltd, (below). Of course, keep in mind that there are other factors to consider, too.

We note that hedge funds don't have a meaningful investment in China Three Gorges Renewables (Group)Ltd. The company's largest shareholder is China Three Gorges Corporation, with ownership of 49%. The second and third largest shareholders are Three Gorges Capital Holdings Co., Ltd. and Beijing Rongze Tongyuan Investment Advisory Co., Ltd., with an equal amount of shares to their name at 3.5%.

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. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.

Insider Ownership Of China Three Gorges Renewables (Group)Ltd

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.

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.

Our information suggests that China Three Gorges Renewables (Group) Co.,Ltd. insiders own under 1% of the company. However, it's possible that insiders might have an indirect interest through a more complex structure. Being so large, we would not expect insiders to own a large proportion of the stock. Collectively, they own CN¥9.8m of stock. It is good to see board members owning shares, but it might be worth checking if those insiders have been buying.

General Public Ownership

The general public, who are usually individual investors, hold a 23% stake in China Three Gorges Renewables (Group)Ltd. 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 Company Ownership

It seems that Private Companies own 58%, of the China Three Gorges Renewables (Group)Ltd stock. 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:

It's always worth thinking about the different groups who own shares in a company. But to understand China Three Gorges Renewables (Group)Ltd better, we need to consider many other factors. For instance, we've identified 2 warning signs for China Three Gorges Renewables (Group)Ltd (1 can't be ignored) that you should be aware of.

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.