What percentage of shares in China City Infrastructure Group Limited (HKG: 2349) do insiders own?

A look at the shareholders of China City Infrastructure Group Limited (HKG: 2349) can tell us which group is more powerful. Insiders often own a large portion of younger and smaller companies, while larger companies tend to have institutions as shareholders. I generally like to see some degree of insider ownership, even if it’s just a little. As Nassim Nicholas Taleb said, “Don’t tell me what you think, tell me what you have in your wallet.

With a market cap of HK $ 860 million, China City Infrastructure Group is a small-cap stock, so it might be overlooked by many institutional investors. Looking at our data on ownership groups (below), it looks like institutional investors bought the company. We can zoom in on the different property groups to learn more about China City Infrastructure Group.

Check out our latest analysis for China City Infrastructure Group

SEHK: 2349 Breakdown of ownership October 19, 2021

What does institutional ownership tell us about China City Infrastructure Group?

Many institutions measure their performance against an index that approximates the local market. Thus, they generally pay more attention to companies that are included in the major indices.

As you can see, institutional investors have a large share of the capital of China City Infrastructure Group. This implies that analysts working for these institutions have reviewed the action and appreciate it. But like everyone else, they could be wrong. It is not uncommon to see a sharp drop in the stock price if two large institutional investors attempt to sell a stock at the same time. So it’s worth checking out China City Infrastructure Group’s past earnings trajectory (below). Of course, keep in mind that there are other factors to consider as well.

profit and revenue growth
SEHK: 2349 Profit and Revenue Growth October 19, 2021

China City Infrastructure Group is not owned by hedge funds. Our data suggests that Chao Bo Li, who is also the company’s Top Key Executive, owns the most shares at 24%. When an insider owns a significant share of a company’s stock, investors see it as a positive sign because it suggests that insiders are ready to tie their wealth to the future of the company. With 22% and 6.9% of shares outstanding, respectively, China Financial International Investments Limited and China Water Affairs Group Limited are the second and third largest shareholders.

A more detailed study of the register of shareholders showed us that 3 of the major shareholders hold a considerable share of the ownership of the company, through their 53% stake.

While it makes sense to study a company’s institutional ownership data, it also makes sense to study analysts’ sentiments to know which way the wind is blowing. As far as I know, there is no analyst coverage of the company, so it probably goes under the radar.

Insider Owned by China City Infrastructure Group

The definition of an insider may differ slightly from country to country, but board members still count. The management of the company manages the company, but the CEO will report to the board of directors, even if he is a member of the board.

Insider ownership is positive when it indicates that executives think like the real owners of the company. However, strong insider ownership can also give immense power to a small group within the company. This can be negative in certain circumstances.

It appears that insiders own a significant proportion of China City Infrastructure Group Limited. The insiders have a HK $ 205 million stake in the HK $ 860 million company. This may suggest that the founders still own a lot of shares. You can click here to see if they bought or sold.

General public property

The general public, with a 37% stake in the company, will not be easily ignored. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in line with other large shareholders.

Owned by a private company

It can be seen that private companies hold 9.6% of the shares issued. It is difficult to draw conclusions from this fact alone, so it is worth considering who owns these private companies. Sometimes insiders or other related parties have an interest in shares of a public company through a separate private company.

Public enterprise ownership

State-owned enterprises currently own 6.9% of the shares of China City Infrastructure Group. It’s hard to say for sure, but it suggests that they have intertwined business interests. This can be a strategic issue, so it’s worth watching this space for changes in ownership.

Next steps:

While it is worth considering the different groups that own a business, there are other factors that are even more important. Consider, for example, the ever-present specter of investment risk. We have identified 1 warning sign with China City Infrastructure Group, and understanding them should be part of your investment process.

Sure this might not be the best stock to buy. So take a look at this free free list of interesting companies.

NB: The figures in this article are calculated from data for the last twelve months, which refer to the 12-month period ending on the last date of the month of date of the financial statement. This may not be consistent with the figures in the annual report for the entire year.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in any of the stocks mentioned.

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