Legal basis: People's Republic of China (PRC) Company Law.
Article 14 A company may set up branches. The establishment of a branch company shall apply to the company registration authority for registration and obtain a business license. A branch company does not have legal person status, and its civil liability shall be borne by the company. A company may set up subsidiaries, which have legal personality and independently bear civil liabilities according to law.
Article 226 Where the fund shares or rights and interests are pledged, the parties shall conclude a written contract. Pledge of shares registered by fund shares or securities registration and settlement institutions; The pledge is established when the securities registration and settlement institution handles the pledge registration; Where other shares are pledged, the pledge shall come from industry and commerce. The administrative department shall be established when handling the pledge registration.