  This paper investigates the effect of cross-shareholding on stock price
synchronicity, as a measure of price informativeness, of the listed firms in
the Chinese stock market. We gauge firms' levels of cross-shareholdings in
terms of centrality in the cross-shareholding network. It is confirmed that it
is through a noise-reducing process that cross-shareholding promotes price
synchronicity and reduces price delay. More importantly, this effect on price
informativeness is pronounced for large firms and in the periods of market
downturns. Overall, our analyses provide insights into the relation between the
ownership structure and price informativeness.
