A wholly-owned subsidiary must be a state-owned enterprise.
Two, more than 50% of the shares, or the largest controlling party, is called holding state-owned enterprises or absolute holding state-owned enterprises.
Third, some shares, some even less than 10%, are called state-owned joint-stock enterprises.
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.