Can GEM companies be acquired?

Legal analysis: GEM companies can be acquired. Investors can make purchases by legal means such as tender offer and agreement purchase. After the acquisition is completed, the purchaser shall report the acquisition to the the State Council securities regulatory body and the stock exchange within fifteen days and make an announcement.

Legal basis: Securities Law of People's Republic of China (PRC).

Article 62 An investor may purchase a listed company by tender offer, agreement purchase or other legal means.

Article 63 If an investor holds or shares about 5% of the voting shares issued by a listed company through securities trading in a stock exchange or through agreements or other arrangements, he shall, within three days from the date of the fact, make a written report to the the State Council securities regulatory body and the stock exchange, notify the listed company and make an announcement, and shall not buy or sell the shares of the listed company again within the above-mentioned time limit, except for the circumstances stipulated by the the State Council securities regulatory body.