Legal analysis: the main feature of cross-shareholding is that A holds the equity of B; B holds the equity of C; C also holds the equity of A. In the bull market, the assets of A, B and C all appreciate, which means that the stocks of other companies they hold are also appreciating, which in turn stimulates their own share prices to rise, thus forming an interactive rising relationship and forming a bubble bull market mechanism.
Legal basis: Article 167 of the Company Law of People's Republic of China (PRC) stipulates that when distributing the after-tax profits of the current year, the company shall withdraw 10% of the profits and include it in the company's statutory reserve fund.