What does the transfer of property rights of subsidiaries mean?

The transfer of property rights of subsidiaries refers to the transaction behavior that the parent company transfers all or part of its equity in subsidiaries to other companies or individuals. This kind of transaction will not change the legal entity of the subsidiary, but will lead to changes in the ownership structure, including changes in control and ownership.

This kind of transaction is usually carried out to raise funds or reduce the risk of subsidiaries. The reasons for transfer in business practice include merger, division, expansion or reorganization of the company. The transfer of property rights of subsidiaries is a very important business decision, which requires full due diligence and careful analysis to ensure that the transfer can bring the greatest benefits to the parent company.

The transfer of property rights of subsidiaries involves many aspects, such as company operation, employees' interests, taxation, law, finance, etc., and needs to be evaluated and consulted by relevant corporate legal consultants, auditors and tax experts. For investors, this kind of transaction may bring some risks, such as the company's poor financial situation, poor credit record or poor business prospects, so investors need to be cautious about such investment opportunities.