The subordinate secondary subsidiary established by a wholly state-owned company has the qualification of enterprise legal person. From the perspective of its asset ownership, the assets of the subsidiary are state-owned assets, and the subsidiary is still a wholly state-owned company. According to the company law, a board of directors and a board of supervisors must be established. A completely natural person company may have an executive director without a board of directors and only a supervisor without a board of supervisors, which is not applicable to a wholly state-owned company.
See Articles 67-70 of the Company Law of People's Republic of China (PRC).