Study On The Impact And The Regulation Of Mother-child Type Cross Shareholding

Cross-shareholdings means companies owns a certain percentage of shares held by each other, and then each become as the other's shareholder. Cross-shareholding was born in Japan as early as 1952; the emergence of China's first cross-shareholdings of listed companies was the event the Liaoning Chengda transferee GF Securities (Chu Yiyun, 2001). With the economic environment changes, business expansion and other factors, cross-shareholdings have become increasingly complex, but the "Company Law ", "Securities Law", and related departmental regulations in our country currently still have no clear provision, which caused the drawbacks of cross-holdings can not be regulation and correction in China's capital market , the normal order can not be maintained, the legitimate interests of investors are not effectively protected, we need this phenomenon to be studied. Cross-shareholdings have Mother-child type cross-shareholdings and non-mother-child type, which have their own characteristics, this paper confers on Mother-child type cross-shareholdings . Company Law in every country strictly prohibit the parent-subsidiary type of cross-shareholdings between the mother and child company,but it still rarely exit in our country ,what is the reason? citing the actual case to illustrates the operation and processes of cross-shareholding practices, while from a theoretical point of view to analysis these operations means to find the real essence of mother-child type cross-shareholdings, and made recommendations regulation on it.With the further deepening of China's reform and opening up, cross-shareholdings that have the function of preventing hostile takeovers, can effectively prevent foreign capital on economic control. Finally, the weakening of the owner of the functions and the role of strengthen the operator functions owned by cross-shareholdings has a positive role towards China's ongoing reform of property rights .helping the state-owned enterprises to become truly independent market entities , contribute to our the formation of an entrepreneurial class. Analysis of cross-holdings in China, forecast the market for the degree of asset bubbles also has practical significance. Therefore, finding the dispose from the annual reports of listed companies, from the perspective of shareholder control chain firmly seize the parent of listed companies'cross-shareholdings between companies to conduct thorough research, especially in China of great significance. .This paper uses methods of case and experience study. From the perspective of the control chain to research cross-holdings between parent and subsidiary companies, by using real case on practices and results of operations to study mother-child type cross-shareholdings, and strive to Infer that type of cross-holdings between mother and child owns the motive of integrate resource and achieve synergy , but also the means to achieve reverse merger as a way of transferring control by asset replacement.