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Why do Chinese companies have so many subsidiaries


rukawa
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Its basically a dis-qualifier for me if a small company has more than 5 subsidiaries. I have found that its frequently the case that there are small Chinese companies with tonnes of subsidiaries such as this one:

 

emperor watch subsidiaries

 

or this one:

 

 

easy repay

 

 

The subsidiaries have weird names like super luck investments or happy good ltd. I just wonder if there was anyone who has insight into the game that is being played. I have no intention of investing in these companies. I just want to know why they do all this.

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What's wrong with having subsidiaries

 

There is nothing wrong with it if it makes sense. With most of these companies it doesn't make sense. A 30 million company that has subsidiaries which invest money, run golf courses, operate in social media etc...doesn't make sense.

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