The General Financial Supervisory Authority revised the “Commercial Bank M&A Loan Risk Management Guidelines” to form the “Administrative Measures on M&A Loans of Commercial Banks”. The heads of relevant departments and bureaus of the General Administration of Financial Supervision answered questions from reporters on related issues. The person in charge said that M&A transactions are large-scale and time-efficient, and M&A entities are under greater financial pressure. In order to better meet the financing needs of M&A transactions, the “Measures” increase the upper limit of controlled M&A loans from 60% to 70% of the price of M&A transactions on the basis of introducing shareholding M&A loans, extend the term from 7 to 10 years, rationally optimize M&A loan conditions, and provide financing facilities for M&A transactions.

The General Financial Supervisory Authority revised the “Commercial Bank M&A Loan Risk Management Guidelines” to form the “Administrative Measures on M&A Loans of Commercial Banks”. The heads of relevant departments and bureaus of the General Administration of Financial Supervision answered questions from reporters on related issues. The person in charge said that M&A transactions are large-scale and time-efficient, and M&A entities are under greater financial pressure. In order to better meet the financing needs of M&A transactions, the “Measures” increase the upper limit of controlled M&A loans from 60% to 70% of the price of M&A transactions on the basis of introducing shareholding M&A loans, extend the term from 7 to 10 years, rationally optimize M&A loan conditions, and provide financing facilities for M&A transactions.