Legal analysis: the equity of the subsidiary belongs to its own property, and the subsidiary has an independent legal person status. The equity of a subsidiary is different from that of the parent company, but the parent company is one of the shareholders of the subsidiary. Equity refers to a comprehensive right of personal rights and property rights enjoyed by shareholders of a limited liability company or a joint stock limited company. That is, equity is the right enjoyed by shareholders based on their shareholder qualifications to obtain economic benefits from the company and participate in the company's operation and management. Equity is the share of shareholders' investment in start-up companies, that is, the equity ratio. The size of the equity ratio directly affects shareholders' right to speak and control the company, and is also the basis of shareholders' dividend ratio. From the nature of equity, there is not much difference between the equity of subsidiaries and the equity of companies.
Legal basis: Article 14 of People's Republic of China (PRC) Company Law: Branches and subsidiaries.
Companies can set up branches. 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.