Key Insights

• Significant control over Shanjin International Gold by individual investors implies that the general public has more power to influence management and governance-related decisions
• 51% of the business is held by the top 6 shareholders
• Insiders own 15% of Shanjin International Gold

To get a sense of who is truly in control of Shanjin International Gold Co., Ltd. (SZSE:000975), it is important to understand the ownership structure of the business. The group holding the most number of shares in the company, around 30% to be precise, is individual investors. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

And public companies on the other hand have a 29% ownership in the company.

Let's take a closer look to see what the different types of shareholders can tell us about Shanjin International Gold.

What Does The Institutional Ownership Tell Us About Shanjin International Gold?

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.

As you can see, institutional investors have a fair amount of stake in Shanjin International Gold. 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. 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 Shanjin International Gold's earnings history below. Of course, the future is what really matters.

Shanjin International Gold is not owned by hedge funds. Shandong Gold Mining Co., Ltd. is currently the company's largest shareholder with 29% of shares outstanding. Wang Shui is the second largest shareholder owning 12% of common stock, and Fullgoal Fund Management Co. Ltd. holds about 3.3% of the company stock.

We did some more digging and found that 6 of the top shareholders account for roughly 51% of the register, implying that along with larger shareholders, there are a few smaller shareholders, thereby balancing out each others interests somewhat.

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. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.

Insider Ownership Of Shanjin International Gold

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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.

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 information suggests that insiders maintain a significant holding in Shanjin International Gold Co., Ltd.. Insiders own CN¥6.3b worth of shares in the CN¥43b company. That's quite meaningful. Most would say this shows a good degree of alignment with shareholders, especially in a company of this size. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public-- including retail investors -- own 30% stake in the company, and hence can't easily be ignored. 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 29% of Shanjin International Gold. 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. Consider risks, for instance. Every company has them, and we've spotted 1 warning sign for Shanjin International Gold you should know about.

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.