What is cross-shareholding?

Cross-shareholding means that the parent company and subsidiaries have absolute or relative control over each other, that is, the parent company and subsidiaries can control each other's operations. The reason for cross-shareholding is that when the parent company increases its capital, the subsidiary company acquires the newly issued shares of the parent company. One of the characteristics of cross-shareholding is the fuzziness of enterprise property rights, and it is impossible to find the ultimate controlling shareholder.