Key Insights

• Institutions' substantial holdings in Hangzhou Binjiang Real Estate GroupLtd implies that they have significant influence over the company's share price
• A total of 2 investors have a majority stake in the company with 57% ownership
• Insiders own 19% of Hangzhou Binjiang Real Estate GroupLtd

A look at the shareholders of Hangzhou Binjiang Real Estate Group Co.,Ltd (SZSE:002244) can tell us which group is most powerful. We can see that institutions own the lion's share in the company with 59% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

As a result, institutional investors endured the highest losses last week after market cap fell by CN¥996m. This set of investors may especially be concerned about the current loss, which adds to a one-year loss of 21% for shareholders. Often called "market movers", institutions wield significant power in influencing the price dynamics of any stock. As a result, if the downtrend continues, institutions may face pressures to sell Hangzhou Binjiang Real Estate GroupLtd, which might have negative implications on individual investors.

Let's delve deeper into each type of owner of Hangzhou Binjiang Real Estate GroupLtd, beginning with the chart below.

What Does The Institutional Ownership Tell Us About Hangzhou Binjiang Real Estate GroupLtd?

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.

We can see that Hangzhou Binjiang Real Estate GroupLtd does have institutional investors; and they hold a good portion of the company's stock. 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 Hangzhou Binjiang Real Estate GroupLtd's earnings history below. Of course, the future is what really matters.

Investors should note that institutions actually own more than half the company, so they can collectively wield significant power. We note that hedge funds don't have a meaningful investment in Hangzhou Binjiang Real Estate GroupLtd. Our data shows that Hangzhou Binjiang Investment Holding Ltd. is the largest shareholder with 45% of shares outstanding. Jinxing Qi is the second largest shareholder owning 12% of common stock, and Jianhua Mo holds about 3.2% of the company stock. Jianhua Mo, who is the third-largest shareholder, also happens to hold the title of Member of the Board of Directors.

After doing some more digging, we found that the top 2 shareholders collectively control more than half of the company's shares, implying that they have considerable power to influence the company's decisions.

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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of Hangzhou Binjiang Real Estate GroupLtd

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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 most recent data indicates that insiders own a reasonable proportion of Hangzhou Binjiang Real Estate Group Co.,Ltd. It is very interesting to see that insiders have a meaningful CN¥4.9b stake in this CN¥25b business. It is good to see this level of investment. You can check here to see if those insiders have been buying recently.

General Public Ownership

The general public, who are usually individual investors, hold a 22% stake in Hangzhou Binjiang Real Estate GroupLtd. 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.

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. For example, we've discovered 4 warning signs for Hangzhou Binjiang Real Estate GroupLtd that you should be aware of before investing here.

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.