Chanjet Information Technology Company Limited's (HKG:1588) largest shareholders are public companies who were rewarded as market cap surged HK$111m last week

Key Insights

• Significant control over Chanjet Information Technology by public companies implies that the general public has more power to influence management and governance-related decisions
• Yonyou Network Technology Co.,Ltd. owns 66% of the company
• Past performance of a company along with ownership data serve to give a strong idea about prospects for a business

Every investor in Chanjet Information Technology Company Limited (HKG:1588) should be aware of the most powerful shareholder groups. We can see that public companies own the lion's share in the company with 66% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

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

Let's take a closer look to see what the different types of shareholders can tell us about Chanjet Information Technology.

See our latest analysis for Chanjet Information Technology

What Does The Institutional Ownership Tell Us About Chanjet Information Technology?

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 Chanjet Information Technology. 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 Chanjet Information Technology's earnings history below. Of course, the future is what really matters.

Chanjet Information Technology is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is Yonyou Network Technology Co.,Ltd. with 66% of shares outstanding. This essentially means that they have extensive influence, if not outright control, over the future of the corporation. With 4.6% and 2.5% of the shares outstanding respectively, UBS Asset Management AG and Gaocheng Capital are the second and third largest shareholders.

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. There is some analyst coverage of the stock, but it could still become more well known, with time.

Insider Ownership Of Chanjet Information Technology

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.

I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.

Our data cannot confirm that board members are holding shares personally. It is unusual not to have at least some personal holdings by board members, so our data might be flawed. A good next step would be to take a look at this free summary of insider buying and selling.

General Public Ownership

The general public, who are usually individual investors, hold a 24% stake in Chanjet Information Technology. 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

Public companies currently own 66% of Chanjet Information Technology stock. 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:

It's always worth thinking about the different groups who own shares in a company. But to understand Chanjet Information Technology better, we need to consider many other factors.

Many find it useful to take an in depth look at how a company has performed in the past. You can access this detailed graph of past earnings, revenue and cash flow.

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.