Public companies are China Industrial Securities International Financial Group Limited's (HKG:6058) biggest owners and were rewarded after market cap rose by HK$76m last week

Key Insights

• Significant control over China Industrial Securities International Financial Group by public companies implies that the general public has more power to influence management and governance-related decisions
• Industrial Securities Co.,Ltd. owns 56% of the company
• Recent purchases by insiders

To get a sense of who is truly in control of China Industrial Securities International Financial Group Limited (HKG:6058), it is important to understand the ownership structure of the business. And the group that holds the biggest piece of the pie are public companies with 56% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

Clearly, public companies benefitted the most after the company's market cap rose by HK$76m last week.

Let's delve deeper into each type of owner of China Industrial Securities International Financial Group, beginning with the chart below.

View our latest analysis for China Industrial Securities International Financial Group

What Does The Institutional Ownership Tell Us About China Industrial Securities International Financial Group?

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 Industrial Securities International Financial Group does have institutional investors; and they hold a good portion of the company's stock. 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 China Industrial Securities International Financial Group's earnings history below. Of course, the future is what really matters.

China Industrial Securities International Financial Group is not owned by hedge funds. Industrial Securities Co.,Ltd. is currently the largest shareholder, with 56% of shares outstanding. This implies that they have majority interest control of the future of the company. Harvest Fund Management Co. Ltd. is the second largest shareholder owning 7.3% of common stock, and Hao Kang Financial Holdngs (Group) Limited, Asset Management Arm holds about 5.1% of the company stock.

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. We're not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.

Insider Ownership Of China Industrial Securities International Financial Group

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.

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 data suggests that insiders own under 1% of China Industrial Securities International Financial Group Limited in their own names. It has a market capitalization of just HK$832m, and the board has only HK$3.6m worth of shares in their own names. We generally like to see a board more invested. However it might be worth checking if those insiders have been buying.

General Public Ownership

With a 31% ownership, the general public, mostly comprising of individual investors, have some degree of sway over China Industrial Securities International Financial Group. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.

Public Company Ownership

It appears to us that public companies own 56% of China Industrial Securities International Financial Group. 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:

I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. To that end, you should be aware of the 1 warning sign we've spotted with China Industrial Securities International Financial Group .

If you would prefer check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, backed by strong financial data.

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.