Impact of Equity Relationship between Parent Subsidiary Company on Pricing Behavior of Subsidiary Company

The equity control is the basic pattern that parent company controls subsidiary;the different stakes have differences in the control and impact.Subsidiaries can be divided into a wholly owned subsidiary,holding subsidiary and sharing subsidiary in accordance with the different stake relationships with parent company.The parent subsidiary company's product prices will not only affect the implementation of the Group's overall strategy,but also will affect the Group's interests.Therefore,parent company will control the pricing behavior of subsidiary to achieve the Group's overall interests.