Legal basis: Article 64 of the Company Law of People's Republic of China (PRC), a wholly state-owned company is a company solely funded by the state, and SASAC, the State Council or other departments authorized by the local people's government to perform the investor's duties. The investor of its wholly-owned subsidiary is not SASAC, but a legal person with independent legal personality, and its property is independent of state property, so it is not a wholly state-owned company and cannot expand layer by layer. It is different from a company composed of two or more state-owned enterprises or other state-owned units with the same investment. Although the ownership of the investment of the latter parties still belongs to the state, and the ownership nature of the company's capital has not changed, there are many investors and shareholders and many stakeholders in the company.