Key Insights

• The considerable ownership by retail investors in Suzhou Chunqiu Electronic Technology indicates that they collectively have a greater say in management and business strategy
• A total of 12 investors have a majority stake in the company with 50% ownership
• Insiders own 40% of Suzhou Chunqiu Electronic Technology

If you want to know who really controls Suzhou Chunqiu Electronic Technology Co., Ltd. (SHSE:603890), then you'll have to look at the makeup of its share registry. With 43% stake, retail investors possess the maximum shares in the company. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

While insiders who own 40% came under pressure after market cap dropped to CN¥5.2b last week,retail investors took the most losses.

In the chart below, we zoom in on the different ownership groups of Suzhou Chunqiu Electronic Technology.

What Does The Institutional Ownership Tell Us About Suzhou Chunqiu Electronic 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 Suzhou Chunqiu Electronic Technology. 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. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Suzhou Chunqiu Electronic Technology's historic earnings and revenue below, but keep in mind there's always more to the story.

Hedge funds don't have many shares in Suzhou Chunqiu Electronic Technology. With a 34% stake, CEO Gewen Xue is the largest shareholder. Xiaofeng Wei is the second largest shareholder owning 4.9% of common stock, and Shanghai Orient Securities Capital Investment Co., Ltd. holds about 3.2% of the company stock. Interestingly, the second-largest shareholder, Xiaofeng Wei is also Other Key Executive, again, pointing towards strong insider ownership amongst the company's top shareholders.

After doing some more digging, we found that the top 12 have the combined ownership of 50% in the company, suggesting that no single shareholder has significant control over the company.

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. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.

Insider Ownership Of Suzhou Chunqiu Electronic 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. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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.

It seems insiders own a significant proportion of Suzhou Chunqiu Electronic Technology Co., Ltd.. Insiders have a CN¥2.1b stake in this CN¥5.2b business. It is great to see insiders so invested in the business. It might be worth checking if those insiders have been buying recently.

General Public Ownership

The general public, who are usually individual investors, hold a 43% stake in Suzhou Chunqiu Electronic Technology. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Suzhou Chunqiu Electronic Technology better, we need to consider many other factors. For instance, we've identified 1 warning sign for Suzhou Chunqiu Electronic Technology that you should be aware of.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.