Key Insights

• Significant insider control over Shanghai BOCHU Electronic Technology implies vested interests in company growth
• The top 4 shareholders own 57% of the company
• Institutional ownership in Shanghai BOCHU Electronic Technology is 18%

If you want to know who really controls Shanghai BOCHU Electronic Technology Corporation Limited. (SHSE:688188), then you'll have to look at the makeup of its share registry. With 66% stake, individual insiders possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).

So it follows, every decision made by insiders of Shanghai BOCHU Electronic Technology regarding the company's future would be crucial to them.

Let's delve deeper into each type of owner of Shanghai BOCHU Electronic Technology, beginning with the chart below.

What Does The Institutional Ownership Tell Us About Shanghai BOCHU 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.

We can see that Shanghai BOCHU Electronic Technology does have institutional investors; and they hold a good portion of the company's stock. 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. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Shanghai BOCHU Electronic Technology, (below). Of course, keep in mind that there are other factors to consider, too.

Shanghai BOCHU Electronic Technology is not owned by hedge funds. Ye Tang is currently the company's largest shareholder with 19% of shares outstanding. In comparison, the second and third largest shareholders hold about 15% and 13% of the stock.

On looking further, we found that 57% of the shares are owned by the top 4 shareholders. In other words, these shareholders have a meaningful say in the decisions of 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. 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 Shanghai BOCHU 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.

Our most recent data indicates that insiders own the majority of Shanghai BOCHU Electronic Technology Corporation Limited.. This means they can collectively make decisions for the company. Given it has a market cap of CN¥37b, that means insiders have a whopping CN¥24b worth of shares in their own names. It is good to see this level of investment. You can check here to see if those insiders have been selling any of their shares.

General Public Ownership

With a 16% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Shanghai BOCHU Electronic 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.

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 instance, we've identified 1 warning sign for Shanghai BOCHU Electronic Technology that you should be aware of.

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.