legal ground
Article 3 of the Measures for the Administration of the Acquisition of Unlisted Public Companies
The acquisition of public companies and the related changes in share rights and interests must abide by laws, administrative regulations and the provisions of China Securities Regulatory Commission (hereinafter referred to as China Securities Regulatory Commission), and follow the principles of openness, fairness and impartiality. The parties concerned shall be honest and trustworthy, abide by social morality and business ethics, consciously safeguard the order of the securities market, and accept the supervision of the government and the public.
Article 4
The acquisition of public companies and related changes in share rights and interests involve national industrial policies, industry access, transfer of state-owned shares, foreign investment and other matters, and can only be carried out after approval by relevant state departments.