legal. According to Article 19 of the Company Law of the People's Republic of China, "a company may provide loans to its subsidiaries." As a state-owned enterprise, the business activities of central enterprises are regulated by the company law, and it is legal to provide loans to holding subsidiaries according to law. As the controlling shareholder, central enterprises have the decision-making power and control power over the holding subsidiaries. Providing loans to the holding subsidiaries will help optimize the capital structure of the whole enterprise group and improve the efficiency of capital use.