This situation is ok, but the investment of SASAC subsidiary needs to be approved by SASAC.
Private enterprise is a kind of enterprise nature, generally there are three types of private enterprises:
(1) sole proprietorship. Refers to an enterprise invested and operated by one person. The investors of a sole proprietorship enterprise shall bear unlimited liability for the debts of the enterprise.
(2) Partnership enterprises. Refers to two or more people in accordance with the agreement to invest, * * * with the operation, * * * negative profits and losses of enterprises. Partners shall be jointly and severally liable for the debts of the enterprise.
(3) Limited liability companies. It means that shareholders are liable to the company to the extent of their capital contribution, and the company is liable to the company's debts with all its assets.