The present situation of cross-shareholding of listed companies in Shanghai and Shenzhen

1. Cross-shareholding is very common, especially in financial enterprises

At present, cross-shareholding of listed companies in Shanghai and Shenzhen is very common, with incomplete statistics. There are 34 cases of cross-shareholding of listed companies in Shanghai and Shenzhen, 361 cases of listed companies in banks (listed and unlisted), 68 cases of insurance companies (listed and unlisted) and 2 cases of comprehensive brokers.

The situation of cross-shareholding and equity participation of listed companies in Shanghai and Shenzhen is different from that in Japan. Japanese companies mostly hold shares with subsidiaries within the group, and most of them have a higher proportion of banks holding shares, while enterprises holding shares with banks have a lower proportion. The equity of China Bank (Quote Forum) is mostly in the hands of enterprises, among which only a few financial enterprises (such as insurance) share in banks, and the same is true from the situation of other financial enterprises, which is caused by the supervision of China's financial industry. And there is a remarkable feature. The shareholding ratio of enterprises in China's shareholding banks is very low, most of which are less than 1%, and most of them are below .1%. Only Ping An holds 4.52% of the shares of Shanghai Pudong Development Bank (Quote Forum) and Oriental Group (Quote Forum) holds 4.71% of the shares of Minsheng Bank (Quote Forum), which is different from the fact that Japanese companies often hold 4% and 5% of the shares of banks. Nevertheless, because the share capital of these enterprises is relatively small, these shares are enough to have a huge impact on listed companies.

compared with banks, the proportion of shares held by enterprises in securities and insurance companies is much higher. Although most securities companies and insurance companies are not listed, these shares are not quoted in the active market and will be calculated by the cost method, but these financial enterprises are in a high-speed growth period, so listed companies that participate in these financial enterprises will get higher capital appreciation, and their return on investment is reflected in financial indicators, which is the return on net assets. Once the equity transfer or investment target is listed, this part of the equity will greatly improve its earnings per share if it is included in the investment income. Similarly, the same is true of listed companies that invest in other excellent enterprises.

2, a large number of shares in financial enterprises make the bubble more serious

China's current accounting standards and the cross-shareholding characteristics of listed companies make equity investment more bubble than Japanese. Financial enterprises are the source of asset revaluation and bubble, and listed companies in Shanghai and Shenzhen hold a large number of such shares, so this bubble is reflected in the stock market that the share prices of financial enterprises participating in the stock market have risen sharply, and quite a few of these enterprises have poor fundamentals, and only relying on financial shares will turn a black chicken into a phoenix. It can be predicted that the bubble of financial equity in China's securities market has just begun, because the listing tide of financial enterprises has just begun, and there are still a large number of securities companies, insurance companies, banks, trusts and other enterprises waiting to be listed, and the equity of these financial enterprises will eventually evolve into a bubble in the securities market.