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If you want to know who really controls Xinchen China Power Holdings Limited (HKG:1148), then you'll have to look at the makeup of its share registry. Generally speaking, as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time. Companies that have been privatized tend to have low insider ownership.
Xinchen China Power Holdings is not a large company by global standards. It has a market capitalization of HK$391m, which means it wouldn't have the attention of many institutional investors. Our analysis of the ownership of the company, below, shows that institutions are noticeable on the share registry. Let's take a closer look to see what the different types of shareholder can tell us about 1148.
View our latest analysis for Xinchen China Power Holdings
What Does The Institutional Ownership Tell Us About Xinchen China Power Holdings?
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.
Xinchen China Power Holdings already has institutions on the share registry. Indeed, they own 5.5% of the company. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Xinchen China Power Holdings, (below). Of course, keep in mind that there are other factors to consider, too.
We note that hedge funds don't have a meaningful investment in Xinchen China Power Holdings. There is some analyst coverage of the stock, but it could still become more well known, with time.
Insider Ownership Of Xinchen China Power Holdings
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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.
I can report that insiders do own shares in Xinchen China Power Holdings Limited. As individuals, the insiders collectively own HK$4.5m worth of the HK$391m company. This shows at least some alignment, but I usually like to see larger insider holdings. You can click here to see if those insiders have been buying or selling.