The formation and expanding of modern and big group company by means of mergering make the preparation of consolidated financial statements become more and more complicated, especially under the circumstance of cross-holding between the member of group company,which has already become a difficult problem during the process of preparing consolidated financial statements.

The cross-holding between companies has salient positive and ill effects,the latter of which demand particular emphasis.

Discussion on cross shareholding of China stock companies;

As a complicated economic phenomenon,though cross shareholding may reduce bargain cost,facilitate finance operation,resist corporation takeover and stabilize stock price,it will lead to a series of negative effects such as fake increase of capital,trenchment effect,jeopardizing security market,limiting market competition,and etc.

Cross shareholding is not only one capital operation method,is also one common method which the corporate growth expands.

Enhancement of Cross Holding Companies and Capital Market Bubble

However,the theoretical and legal research on cross holding is immature,and its influence on corporation and capital market has not been proper addressed.

With the development of Chinese security market, cross holding becomes more and more common in the stock holding structure.

Changes in Cross-shareholding and Reform in Japanese Corporate Governance;

The Studies on the Legal Regulation of Cross-shareholding of Companies;

The Law and Economics Analysis on Cross-shareholding