This paper classifies the state-owned listed companies into the central government holding companies and the local government holding companies. Then it empirically analyzes the value effect of cash holding for these two kinds of listed companies. The research result shows that there is a big difference in the value of cash holding between these two kinds of firms. The analysis indicates that the value of cash holdings for central government holding corporations is higher than that for local government holding corporations. One additional explanation to this difference is that the two kinds of companies have different resource endowments.