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BOC Hong Kong (Holdings) Limited (HKG:2388) Stock Most Popular Amongst Public Companies Who Own 66%, While Individual Investors Hold 25%

Simply Wall St ·  Sep 6, 2022 19:30

A look at the shareholders of BOC Hong Kong (Holdings) Limited (HKG:2388) can tell us which group is most powerful. The group holding the most number of shares in the company, around 66% to be precise, is public companies. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

And individual investors on the other hand have a 25% ownership in the company.

Let's delve deeper into each type of owner of BOC Hong Kong (Holdings), beginning with the chart below.

Check out our latest analysis for BOC Hong Kong (Holdings)

ownership-breakdownSEHK:2388 Ownership Breakdown September 6th 2022

What Does The Institutional Ownership Tell Us About BOC Hong Kong (Holdings)?

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 BOC Hong Kong (Holdings) 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. 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 BOC Hong Kong (Holdings)'s earnings history below. Of course, the future is what really matters.

earnings-and-revenue-growthSEHK:2388 Earnings and Revenue Growth September 6th 2022

BOC Hong Kong (Holdings) is not owned by hedge funds. The company's largest shareholder is Bank of China Limited, with ownership of 66%. This essentially means that they have extensive influence, if not outright control, over the future of the corporation. In comparison, the second and third largest shareholders hold about 1.5% and 1.3% of the stock.

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 BOC Hong Kong (Holdings)

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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.

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 data suggests that insiders own under 1% of BOC Hong Kong (Holdings) Limited in their own names. Being so large, we would not expect insiders to own a large proportion of the stock. Collectively, they own HK$1.1m of stock. Arguably recent buying and selling is just as important to consider. You can click here to see if insiders have been buying or selling.

General Public Ownership

With a 25% ownership, the general public, mostly comprising of individual investors, have some degree of sway over BOC Hong Kong (Holdings). 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

Public companies currently own 66% of BOC Hong Kong (Holdings) stock. 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:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Consider risks, for instance. Every company has them, and we've spotted 1 warning sign for BOC Hong Kong (Holdings) you should know about.

If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.

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.

Disclaimer: This content is for informational and educational purposes only and does not constitute a recommendation or endorsement of any specific investment or investment strategy. Read more
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