Greenland Hong Kong Holdings Limited's (HKG:337) market cap surged HK$111m last week, public companies who have a lot riding on the company were rewarded

Key Insights

• The considerable ownership by public companies in Greenland Hong Kong Holdings indicates that they collectively have a greater say in management and business strategy
• 60% of the company is held by a single shareholder (Greenland Holdings Corporation Limited)
• Using data from company's past performance alongside ownership research, one can better assess the future performance of a company

Every investor in Greenland Hong Kong Holdings Limited (HKG:337) should be aware of the most powerful shareholder groups. And the group that holds the biggest piece of the pie are public companies with 60% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Clearly, public companies benefitted the most after the company's market cap rose by HK$111m last week.

In the chart below, we zoom in on the different ownership groups of Greenland Hong Kong Holdings.

Check out our latest analysis for Greenland Hong Kong Holdings

What Does The Institutional Ownership Tell Us About Greenland Hong Kong Holdings?

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.

Since institutions own only a small portion of Greenland Hong Kong Holdings, many may not have spent much time considering the stock. But it's clear that some have; and they liked it enough to buy in. If the business gets stronger from here, we could see a situation where more institutions are keen to buy. It is not uncommon to see a big share price rise if multiple institutional investors are trying to buy into a stock at the same time. So check out the historic earnings trajectory, below, but keep in mind it's the future that counts most.

Greenland Hong Kong Holdings is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is Greenland Holdings Corporation Limited with 60% of shares outstanding. With such a huge stake in the ownership, we infer that they have significant control of the future of the company. With 5.4% and 2.8% of the shares outstanding respectively, Weixian Wang and HSBC Global Asset Management (UK) Limited are the second and third largest shareholders. Weixian Wang, who is the second-largest shareholder, also happens to hold the title of Top Key Executive.

Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.

Insider Ownership Of Greenland Hong Kong Holdings

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.

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.

We can report that insiders do own shares in Greenland Hong Kong Holdings Limited. It has a market capitalization of just HK$803m, and insiders have HK$44m worth of shares, in their own names. This shows at least some alignment, but we usually like to see larger insider holdings. You can click here to see if those insiders have been buying or selling.

General Public Ownership

With a 32% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Greenland Hong Kong Holdings. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Public Company Ownership

Public companies currently own 60% of Greenland Hong Kong Holdings stock. 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:

It's always worth thinking about the different groups who own shares in a company. But to understand Greenland Hong Kong Holdings better, we need to consider many other factors. For instance, we've identified 2 warning signs for Greenland Hong Kong Holdings that you should be aware of.

Of course this may not be the best stock to buy. Therefore, you may wish to see our free collection of interesting prospects boasting favorable financials.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.