What type of shareholders are owners of Zhongyuan Bank Co., Ltd. (HKG: 1216)?

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A look at the shareholders of Zhongyuan Bank Co., Ltd. (HKG: 1216) can tell us which group is the most powerful. Institutions will often hold shares in larger companies, and we expect insiders to own a significant percentage of the smaller ones. I usually like to see some degree of insider ownership, even if it is only a little bit. As Nassim Nicholas Taleb said, "Do not tell me what you think, tell me what you have in your wallet."

Zhongyuan Bank is a very big company. It has a market capitalization of 47 billion HK. Normally, institutions would own a large part of a company of this size. Looking at our ownership group data (below), it appears that institutions are visible on the share register. Let's take a closer look at what different types of shareholders can tell us about 1216.

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SEHK: Property Summary 1216, March 15, 2019

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What is institutional property telling us about Zhongyuan Bank?

Institutional investors generally compare their own returns to the returns of a commonly followed index. As a result, they generally consider buying larger companies included in the relevant benchmark.

Zhongyuan Bank already has institutions registered in the share register. In fact, they own 5.1% of the company. This implies that the analysts working for these institutions have looked at the stock and that they like it. But like everyone else, they might be wrong. It is not uncommon to see a significant drop in the stock price if two large institutional investors try to sell their shares at the same time. It is therefore interesting to check the trajectory of Zhongyuan Bank's previous profits (below). Of course, keep in mind that there are also other factors to take into account.

SEHK: Income Statement 1216, March 15, 2019

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Zhongyuan Bank is not owned by hedge funds. Our information suggests that there is no stock coverage by analysts, so it is probably little known.

Insider property of Zhongyuan Bank

While the precise definition of an insider may be subjective, almost everyone views board members as insiders. The management finally answers the advice. However, it is not uncommon for executives to be on the board, especially if they are the founder or CEO.

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

The story continues

Shareholders would probably be interested to learn that insiders own shares of Zhongyuan Bank Co., Ltd. .. Insiders have a significant stake of HK $ 3.8 billion. Most would see a real benefit. It's good to see this level of insider investment. You can check here to see if these insiders have recently purchased.

Property of the general public

The general public – mainly retail investors – holds 50% of the Zhongyuan bank. With this ownership size, retail investors can collectively play a role in decisions that affect shareholder returns, such as dividend policies and the appointment of directors. They can also exercise the power to refuse an acquisition or merger without improving their profitability.

Capital investment

With a participation of 7.0%, private equity firms could influence the board of directors of 1216. This could encourage some investors because equity can sometimes encourage strategies that help the market. to see the value of society. Alternatively, these holders could exit the investment after making it public.

Owned by a private company

It seems that private companies hold 30% of the 1216 shares. It may be worthwhile to dig deeper into this question. If related parties, such as insiders, have an interest in any of these private companies, this should be stated in the annual report. Private companies may also have a strategic interest in society.

Next steps:

I find it very interesting to look at exactly who owns a business. But to really understand better, we must also consider other information.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "I like to dive deeper in the way a company has performed in the past. You can find incomes and historical incomes in this detailed graph"data-reactid =" 74 ">I like to dive deeper in the way a company has performed in the past. You can find incomes and historical incomes in this detailed graph.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Of course this may not be the best stock to buy. So take a look at this free free list of interesting companies. "data-reactid =" 75 "> Of course this may not be the best stock to buy. So take a look at this free free list of interesting companies.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "NB: The figures in this article are based on data from the last 12 months, which refers to the 12-month period ending on the last day of the month of the date of the financial statements. This may not correspond to the figures in the annual report of the year."data-reactid =" 76 "> NB: The figures in this article are calculated using data from the last 12 months, which refer to the 12-month period ending on the last day of the month of the month. financial statement closing date, be consistent with the figures in the annual report.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Our goal is to provide you with a long-term research analysis based on fundamental data. Note that our analysis may not take into account the latest price sensitive business announcements or qualitative information.

If you notice an error that needs to be corrected, please contact the publisher at editorial-team@simplywallst.com. This article from Simply Wall St is of a general nature. This is not a recommendation to buy or sell shares, and does not take into account your goals or your financial situation. Simply Wall St has no position on the actions mentioned. Thanks for the reading.

"data-reactid =" 77 "> Our goal is to provide you with a long-term, focused research analysis based on fundamental data.Please note that our analysis may not take into account the latest announcements of price-sensitive companies or qualitative information.

If you notice an error that needs to be corrected, please contact the publisher at editorial-team@simplywallst.com. This article from Simply Wall St is of a general nature. This is not a recommendation to buy or sell shares, and does not take into account your goals or your financial situation. Simply Wall St has no position on the actions mentioned. Thanks for the reading.