Legal analysis: Holding subsidiary means that more than 50% of its capital contribution or shares are controlled by another company, but it does not reach 100%. In other words, the holding subsidiary must hold more than 50% of the shares. As the controlling shareholder or actual controller, it exercises the power of supervision and management over the major issues of the holding subsidiaries, and enjoys the decision-making power on the investment returns and major issues of the investment enterprises according to law.
Legal basis: Branch companies can be established in Article 14 of People's Republic of China (PRC) Company Law. 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.