Is it legal for the two companies to cross-hold shares?

It is legal for the two companies to cross-hold shares. This paper analyzes the concept, types, advantages and disadvantages of company cross-shareholding, and points out that cross-shareholding refers to mutual investment between enterprise legal persons, becoming the investors of the other party and holding the equity of the other party. The subsidiary holding the equity of the parent company is also a cross-shareholding. In fact, in the company law, there is no restriction on this kind of cross-shareholding between subsidiaries and parent companies, so this situation is more common in practice. In the process of cross-shareholding between subsidiaries and parent companies, the original parent-child relationship cannot be destroyed, and the parent company controls the subsidiaries.

For the choice of cross-shareholding companies, we are optimistic about four types of investment targets:

1. Pay attention to holding shares of financial companies under the background of local currency appreciation, such as holding shares of listed companies such as savings finance, brokerage and insurance.

2. Listed companies that hold shares of companies with rare metals, oil, coal and other opportunities for resource revaluation. , with relatively strong bargaining power, so its stock may have a larger appreciation space in the asset market.

3. Listed companies holding equity of high-quality companies.

4. A listed company holding the equity of the company to be listed.

Legal basis: Article 20 of the Company Law of People's Republic of China (PRC).

Shareholders of the company shall abide by laws, administrative regulations and the articles of association, exercise their rights according to law, and shall not abuse their rights to harm the interests of the company or other shareholders; The company's independent legal person status and the limited liability of shareholders shall not be abused to harm the interests of the company's creditors. Shareholders of a company who abuse their rights and cause losses to the company or other shareholders shall be liable for compensation according to law. Shareholders of a company who abuse the independent status of a company as a legal person and the limited liability of shareholders to evade debts and seriously damage the interests of creditors of the company shall be jointly and severally liable for the debts of the company.