Public companies account for 66% of BOC Hong Kong (Holdings) Limited's (HKG:2388) ownership, while individual investors account for 26%

Key Insights

• The considerable ownership by public companies in BOC Hong Kong (Holdings) indicates that they collectively have a greater say in management and business strategy
• The largest shareholder of the company is Bank of China Limited with a 66% stake
• Using data from analyst forecasts alongside ownership research, one can better assess the future performance of a company

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To get a sense of who is truly in control of BOC Hong Kong (Holdings) Limited (HKG:2388), it is important to understand the ownership structure of the business. The group holding the most number of shares in the company, around 66% to be precise, is public companies. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Individual investors, on the other hand, account for 26% of the company's stockholders.

Let's delve deeper into each type of owner of BOC Hong Kong (Holdings), beginning with the chart below.

Check out our latest analysis for BOC Hong Kong (Holdings)

What Does The Institutional Ownership Tell Us About BOC Hong Kong (Holdings)?

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 BOC Hong Kong (Holdings). 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 BOC Hong Kong (Holdings), (below). Of course, keep in mind that there are other factors to consider, too.

Hedge funds don't have many shares in BOC Hong Kong (Holdings). Our data shows that Bank of China Limited is the largest shareholder with 66% of shares outstanding. With such a huge stake in the ownership, we infer that they have significant control of the future of the company. Meanwhile, the second and third largest shareholders, hold 1.5% and 1.5%, of the shares outstanding, respectively.

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

Insider Ownership Of BOC Hong Kong (Holdings)

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.

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 note our data does not show any board members holding shares, personally. We do not see this low level of ownership often, and it is possible our data is imperfect. But shareholders can click here to check if insiders have been selling stock.

General Public Ownership

With a 26% ownership, the general public, mostly comprising of individual investors, have some degree of sway over BOC Hong Kong (Holdings). 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.

Public Company Ownership

We can see that public companies hold 66% of the BOC Hong Kong (Holdings) shares on issue. This may be a strategic interest and the two companies may have related business interests. It could be that they have de-merged. This holding is probably worth investigating further.

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 1 warning sign for BOC Hong Kong (Holdings) you should be aware of.

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.