What is the nature of wholly-owned subsidiaries of state-owned enterprises?

Legal analysis: wholly-owned subsidiaries of state-owned enterprises have certain administrative nature. The wholly-owned subsidiary of a state-owned enterprise is a wholly state-owned company. A wholly state-owned company refers to a limited liability company established by a state-authorized investment institution or a state-authorized department.

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.