Over 1,000 cases of cross stock-holding among listed companies
will be put under the spotlight following the bourses' new
circulars on the disclosure of listed companies' interim reports,
Shanghai Securities News reported.
Listed companies must release information on the stocks they
hold in other listed companies and the stakes they have in
non-listed financial companies and companies planning to go public,
according to announcements issued by the Shanghai Stock Exchange
(SSE) and Shenzhen Stock Exchange.
It's the first time that listed companies must disclose their
cross stock-holding information.
There were altogether 1,454 listed companies in the Shanghai and
Shenzhen stock exchanges as of yesterday. A total of 1,135 listed
companies hold shares in other companies, accounting for 78 percent
of the total number of listed companies.
According to incomplete statistics from the Changjiang
Securities Research Institute, the cases of cross stock-holding
among listed companies are 340. There are 361 cases involving
listed companies holding stocks in listed and non-listed banks; 68
cases in insurance companies; 270 cases in integrated securities
firms; and 68 cases with investments in trust companies. There are
also eight cases of listed companies having stakes in securities
brokerages, and 20 cases in fund management companies.
In addition, some listed companies hold shares in futures firms.
So the number of cases involving listed companies holding stocks in
other firms will exceed 1,135. The influence of cross stock holding
on the performance of listed companies depends on the
classification of the related share investments by the listed
companies.
(China Daily July 4, 2007)