It means that a subsidiary becomes a parent company, and the parent company becomes a subsidiary. The acquisition of 0/00% equity of the parent company/KLOC by a subsidiary means that the acquirer becomes the parent company, the sole shareholder of the acquirer, and is a wholly-owned subsidiary of the acquirer. The acquirer has the responsibility to exercise shareholder rights and form the company organization of the subsidiary. This is why many offshore companies acquire the equity of the parent company, including the parent company in the listed assets, so as to realize overseas listing.
legal ground
Company Law of the People's Republic of China