China State Construction Engineering Corporation Limited's (SHSE:601668) Largest Shareholders Are Private Companies With 56% Ownership, Individual Investors Own 32%

Simply Wall St ·  Jan 17 17:28

Key Insights

  • Significant control over China State Construction Engineering by private companies implies that the general public has more power to influence management and governance-related decisions
  • China Construction Engineering Corp. owns 56% of the company
  • Institutions own 12% of China State Construction Engineering

If you want to know who really controls China State Construction Engineering Corporation Limited (SHSE:601668), then you'll have to look at the makeup of its share registry. We can see that private companies own the lion's share in the company with 56% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Meanwhile, individual investors make up 32% of the company's shareholders.

In the chart below, we zoom in on the different ownership groups of China State Construction Engineering.

Check out our latest analysis for China State Construction Engineering

SHSE:601668 Ownership Breakdown January 17th 2024

What Does The Institutional Ownership Tell Us About China State Construction Engineering?

Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.

As you can see, institutional investors have a fair amount of stake in China State Construction Engineering. 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 China State Construction Engineering's earnings history below. Of course, the future is what really matters.

SHSE:601668 Earnings and Revenue Growth January 17th 2024

Hedge funds don't have many shares in China State Construction Engineering. Looking at our data, we can see that the largest shareholder is China Construction Engineering Corp. with 56% of shares outstanding. This implies that they have majority interest control of the future of the company. China Securities Finance Corp, Asset Management Arm is the second largest shareholder owning 3.0% of common stock, and Central Huijin Asset Management Ltd. holds about 1.4% of the company stock.

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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of China State Construction Engineering

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.

Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.

We note our data does not show any board members holding shares, personally. It is unusual not to have at least some personal holdings by board members, so our data might be flawed. A good next step would be to check how much the CEO is paid.

General Public Ownership

The general public-- including retail investors -- own 32% stake in the company, and hence can't easily be ignored. 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.

Private Company Ownership

It seems that Private Companies own 56%, of the China State Construction Engineering stock. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company.

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. To that end, you should be aware of the 1 warning sign we've spotted with China State Construction Engineering .

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.

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