The holding company is a firm, which possesses others' Shares with right to vote to a great degree as to have right to control or manage others. A pure industrial holding company is a firm, which possesses subsidiary company's Shares with right to vote by a large majority and controls his subsidiary company through the subsidiary company's Board and Shareholder meeting. A pure industrial holding company does not engage in production and/or marketing activities like an operating holding company. The state—owned pure industrial holding company is a result Of the reforms Of our enterprises system．In this paper．we examine the nature 0f state-owned pure industria1 holding company and propose that its functions should be engaging in property rights，industrial coordination，ma nagement and supervision，strategic management and social function s，