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A look at the shareholders of China Golden Classic Group Limited (HKG:8281) can tell us which group is most powerful. Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies. I quite like to see at least a little bit of insider ownership. As Charlie Munger said 'Show me the incentive and I will show you the outcome.'
China Golden Classic Group is a smaller company with a market capitalization of HK$295m, so it may still be flying under the radar of many institutional investors. In the chart below below, we can see that institutions are not on the share registry. Let's take a closer look to see what the different types of shareholder can tell us about 8281.
Check out our latest analysis for China Golden Classic Group
What Does The Lack Of Institutional Ownership Tell Us About China Golden Classic Group?
Small companies that are not very actively traded often lack institutional investors, but it's less common to see large companies without them.
There are multiple explanations for why institutions don't own a stock. The most common is that the company is too small relative to fund under management, so the institition does not bother to look closely at the company. Alternatively, there might be something about the company that has kept institutional investors away. Institutional investors may not find the historic growth of the business impressive, or there might be other factors at play. You can see the past revenue performance of China Golden Classic Group, for yourself, below.
Hedge funds don't have many shares in China Golden Classic Group. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.
Insider Ownership Of China Golden Classic Group
The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.
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.
It seems that insiders own more than half the China Golden Classic Group Limited stock. This gives them a lot of power. So they have a HK$201m stake in this HK$295m business. Most would argue this is a positive, showing strong alignment with shareholders. You can click here to see if those insiders have been buying or selling.