What does the group holding subsidiary mean?

A group holding subsidiary refers to a subsidiary that a large enterprise group holds more than a certain proportion of shares and manages and controls it. A subsidiary controlled by a group can be a company controlled by itself or a company controlled by other shareholders. In the course of operation, the subsidiaries of the group holding company enjoy the advantages of capital, technology and human resources of the parent company, and can operate the enterprise more efficiently and professionally.

During the operation of the subsidiaries controlled by the group, the parent company can audit, guide and supervise the subsidiaries to ensure that the subsidiaries make rational use of the resources and advantages of the group in their business activities, and have good development direction and prospects. At the same time, with the support of the parent company's capital, technology and management experience, subsidiaries can have more opportunities to explore new markets and expand their business.

Although the group holding subsidiaries have certain advantages, they also have great risks. The existence of subsidiaries cannot replace the operation of the parent company, and the parent company needs to strictly supervise the rights and assets of subsidiaries. In addition, the independent risk of subsidiaries also needs to be properly handled in the course of operation to ensure that the influence of credit risk of subsidiaries will not spread to the parent company and other subsidiaries of the group. To sum up, the subsidiaries controlled by the group need careful management and control in order to make them play a greater economic value.