Can shell companies buy listed companies?

Shell companies can't buy listed companies in principle. Shell companies refer to companies that have no investors to subscribe for shares and no actual production and operation activities. Investors shall acquire listed companies by legal means such as tender offer and agreement purchase. Shell companies are not qualified to buy listed companies.

legal ground

Article 62 of the Securities Law of People's Republic of China (PRC)

Investors can acquire listed companies by legal means such as tender offer and agreement purchase.

Article 77

The State Council Securities Regulatory Authority shall formulate specific measures for the acquisition of listed companies in accordance with this Law.

When a listed company is divided or merged by other companies, it shall report to the the State Council Securities Regulatory Authority and make an announcement.