Key Insights

• Significant control over Chengdu Olymvax Biopharmaceuticals by individual investors implies that the general public has more power to influence management and governance-related decisions
• The top 9 shareholders own 51% of the company
• Insider ownership in Chengdu Olymvax Biopharmaceuticals is 31%

If you want to know who really controls Chengdu Olymvax Biopharmaceuticals Inc. (SHSE:688319), then you'll have to look at the makeup of its share registry. We can see that individual investors own the lion's share in the company with 36% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Individual investors gained the most after market cap touched CN¥9.2b last week, while insiders who own 31% also benefitted.

Let's take a closer look to see what the different types of shareholders can tell us about Chengdu Olymvax Biopharmaceuticals.

Check out our latest analysis for Chengdu Olymvax Biopharmaceuticals

What Does The Institutional Ownership Tell Us About Chengdu Olymvax Biopharmaceuticals?

Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.

We can see that Chengdu Olymvax Biopharmaceuticals does have institutional investors; and they hold a good portion of the company's stock. 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. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Chengdu Olymvax Biopharmaceuticals' historic earnings and revenue below, but keep in mind there's always more to the story.

Hedge funds don't have many shares in Chengdu Olymvax Biopharmaceuticals. Chongqing Wushan Biotechnology Co., Ltd. is currently the company's largest shareholder with 18% of shares outstanding. In comparison, the second and third largest shareholders hold about 7.5% and 6.4% of the stock. Note that the second and third-largest shareholders are also Senior Key Executive and Chairman of Corporate Board, respectively, meaning that the company's top shareholders are insiders. Additionally, the company's CEO Shaowen Fan directly holds 3.9% of the total shares outstanding.

We also observed that the top 9 shareholders account for more than half of the share register, with a few smaller shareholders to balance the interests of the larger ones to a certain extent.

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

Insider Ownership Of Chengdu Olymvax Biopharmaceuticals

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.

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 most recent data indicates that insiders own a reasonable proportion of Chengdu Olymvax Biopharmaceuticals Inc.. It has a market capitalization of just CN¥9.2b, and insiders have CN¥2.8b worth of shares in their own names. That's quite significant. It is good to see this level of investment. You can check here to see if those insiders have been buying recently.

General Public Ownership

The general public, who are usually individual investors, hold a 36% stake in Chengdu Olymvax Biopharmaceuticals. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.

Private Company Ownership

We can see that Private Companies own 21%, of the shares on issue. 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:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Case in point: We've spotted 2 warning signs for Chengdu Olymvax Biopharmaceuticals you should be aware of.

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.