Shares of Zhejiang Semir Garments Co Ltd closed at 23 yuan ($3.75) on Wednesday, down 6.77 percent after it announced its acquisition of GXG, a menswear brand.

Semir announced on Tuesday that it will take over 71 percent of GXG stocks, valued at up to 2.26 billion yuan.

High inventories have dogged China's garment makers.

According to the Zhejiang-based Hexin Flush Network Services Ltd, inventories of 90 percent of the 22 listed Chinese garment makers are increasing.