China Cross-shareholdings,

In the context of the so-called bull market in the end of 2005, accompanied by the lifting of the ban of the "non-tradable share", Non-tradable share reform and the implement of The New 'Accounting Standards on the January 1st,2007, cross-share holdings become a listed company's growth driver in the hot market and a hot speculation in the secondary market. Cross-share holdings of listed companies is widespread in the stock market,as has formed a special plate. Many listed companies do benefit from this, but there is a lot of hidden problems at the same time. As the bursting of the bubble in China's stock market in 2008, the emergence of cross-shareholdings has also been ruined by a loss of the knock-on effect, the phenomenon causes the reflection.This article aims to analyze the type of cross-shareholdings, the motive and the emerging characteristics in this specific context, on the basis of these, then based on a typical case, Jilin aodong shares to the Guangfa Securities,in the way of quantitative analysis method, principal component analysis and eactor analysis, regression analysis,and other to cases of the company's financial situation and investment income from principal operations of the impact of these two for the analysis of the context clues, through horizontal and vertical contrast, Jilin and arrive at Wuhan Kin Compared to the people, their management ability is by no means remarkable, but its stock price and earnings are higher than that of Wuhan with the public and health industry average, mainly in the cross-holdings of investment income gained on the profit contribution accounted for the relatively high proportion of.Thus it is pointed out that the investment income on the share price performance and contribution has become a type of cross-shareholdings of listed companies chasing the biggest target. However, this does not have continuity. This investment income is based on figures and it is easy for the bubble, the stock market as a whole and the trend of a high degree of correlation. In the bull market, cross-shareholdings is with "rising stock prices-the market value-growth-rose," the self-reinforcing mechanism. As the listed company's investment income is part of a major source of cross-shareholdings, which means that once the end of the stock market hold up well in the market, the performance of listed companies increased it will be difficult to maintain; Once a factor in the emergence of a changing market trends, as a whole The process will be reversed, thereby increasing the risk of the market. The performance of listed companies fell down off the market, the market will fall led to the type of cross-shareholdings of listed companies decreased investment income, the inevitably bring about the end results of listed companies fell sharply.As a rational investor should be an objective analysis of the causes of growth, the primary concern is the listed company's main business growth and sustainability, investment income is fully aware of the economic cycle and industry factors, such as temporary and can not maintain the sustained performance of listed companies Growth and guard against cross-shareholdings of listed companies may have a knock-on effect on the risk, take a rational investment decisions; and the listed companies themselves, under the new circumstances should focus on its main business, not empty-economic investment. In particular, in the increasingly volatile economic background, should keep a clear head, based on their main business, the ability to maintain sustainable development in order to create a sustained cash flow, improve their core competitiveness. At the same time, this article is the norms of Chinese industrial and financial capital of the integration, with a certain degree of reference.