Legal analysis: As the branch is only a subsidiary of the head office, its equity is naturally distributed by the head office, but it cannot be distributed by itself. A branch refers to a branch under the jurisdiction of a company, that is, an organization established by a company outside its residence to engage in activities in its own name. According to the provisions of the Company Law, a branch established by a limited liability company or a joint stock limited company does not have the qualification of an enterprise legal person, and its civil liability shall be borne by the head office. Therefore, because the branch is only a subsidiary of the head office, its equity is naturally distributed by the head office, but it cannot be distributed by itself.
Legal basis: Article 125 of the Company Law of People's Republic of China (PRC): Shares and Forms The capital of a joint stock limited company is divided into shares, and the amount of each share is equal. The shares of the company take the form of shares. A stock is a certificate issued by a company to prove the shares held by shareholders.