Cross-shareholding is a situation in which two enterprises jointly own shares of each other—this activity is like a double-edged sword, with both advantages and disadvantages. Cross-shareholding played a vital role in the goal of economic development in history. Crossshareholding shareholders promote becoming "stable" and control the profit-sharing policy. Along with the historical position, cross-ownership has consequences for the economy. The article studies the influence of cross-ownership on the quality of information transparency. Specifically, cross-ownership can falsify disclosed information. Cross-shareholding will affect the interests of related parties, affecting the market's health.