The cross holding of company shares —A
preliminary legal study of Japan and China

doi:10.1007/s11463-009-0027-y

Front. Law China

2009, Vol. 4

Issue (4) : 507-522 https://doi.org/10.1007/s11463-009-0027-y

Research articles

The cross holding of company shares —A preliminary legal study of Japan and China

GUO Li¹, YAKURA Shinsuke²,

1.School of Law, Peking University, Beijing 100871, China; 2.Paul Hastings Gaikokuho Kyodo Jigyo, Ark Mori Bldg 34F, 1-12-32 Akasaka Minato-ku, Japan;

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Abstract Cross shareholding is a practice whereby pairs of companies exchange holding of shares. It is vitally important to recognize that cross shareholding has both positive and negative effects, the latter of which demand particular scrutiny. This article tries to suggest a possible framework for the regulation of cross shareholding in China, by mainly applying lessons and implications from the experiences of Japan, where cross-holding has contributed to the spike and collapse of its economy. Currency appreciation, accounting rules changes and capital market restructuring are putting China in the similar shoes. Targeting at different situations, hereby a spectrum of rules has been proposed.

Keywords cross-holding company capital structure corporate governance capital market parent-subsidiary conglomerate

Issue Date: 05 December 2009

Cite this article:

GUO Li,YAKURA Shinsuke. The cross holding of company shares —A preliminary legal study of Japan and China[J]. Front. Law China, 2009, 4(4): 507-522.

URL:

https://academic.hep.com.cn/flc/EN/10.1007/s11463-009-0027-y
https://academic.hep.com.cn/flc/EN/Y2009/V4/I4/507

[1]	WANG Chuanli, DONG Gang. Social responsibilities of transnational corporations[J]. Front. Law China, 2007, 2(3): 378-402.
[2]	WANG Weiguo. The New Insolvency Law and Governance of Corporate Legal Person[J]. Front. Law China, 2006, 1(1): 79-91.

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