Key Insights

• Shanghai Lujiazui Finance & Trade Zone DevelopmentLtd's significant private companies ownership suggests that the key decisions are influenced by shareholders from the larger public
• Shanghai International Group Co.,Ltd. owns 56% of the company
• 10% of Shanghai Lujiazui Finance & Trade Zone DevelopmentLtd is held by Institutions

If you want to know who really controls Shanghai Lujiazui Finance & Trade Zone Development Co.,Ltd. (SHSE:600663), then you'll have to look at the makeup of its share registry. With 56% stake, private companies 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.

And individual investors on the other hand have a 33% ownership in the company.

Let's take a closer look to see what the different types of shareholders can tell us about Shanghai Lujiazui Finance & Trade Zone DevelopmentLtd.

See our latest analysis for Shanghai Lujiazui Finance & Trade Zone DevelopmentLtd

What Does The Institutional Ownership Tell Us About Shanghai Lujiazui Finance & Trade Zone DevelopmentLtd?

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 Shanghai Lujiazui Finance & Trade Zone DevelopmentLtd 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 Shanghai Lujiazui Finance & Trade Zone DevelopmentLtd's earnings history below. Of course, the future is what really matters.

Hedge funds don't have many shares in Shanghai Lujiazui Finance & Trade Zone DevelopmentLtd. Shanghai International Group Co.,Ltd. is currently the company's largest shareholder with 56% of shares outstanding. This implies that they have majority interest control of the future of the company. With 3.0% and 1.3% of the shares outstanding respectively, Shanghai International Group Assets Management Co., Ltd. and BlackRock, Inc. are the second and third largest shareholders.

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 is some analyst coverage of the stock, but it could still become more well known, with time.

Insider Ownership Of Shanghai Lujiazui Finance & Trade Zone DevelopmentLtd

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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 information suggests that Shanghai Lujiazui Finance & Trade Zone Development Co.,Ltd. insiders own under 1% of the company. However, it's possible that insiders might have an indirect interest through a more complex structure. It's a big company, so even a small proportional interest can create alignment between the board and shareholders. In this case insiders own CN¥14m worth of shares. 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 33% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Shanghai Lujiazui Finance & Trade Zone DevelopmentLtd. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Private Company Ownership

Our data indicates that Private Companies hold 56%, of the company's shares. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. For instance, we've identified 4 warning signs for Shanghai Lujiazui Finance & Trade Zone DevelopmentLtd (2 are potentially serious) that you should be aware of.

Ultimately the future is most important. You can access this free report on analyst forecasts for the company.

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.