China Interbank Market Dealers Association: Enhance the flexibility of fund utilization, prioritize support for key areas mergers and acquisitions.

The Trading Association has issued the "Notice on Optimizing the Work Mechanism of M&A Bills". The optimized M&A bills are conducive to guiding funds to support corporate M&A restructuring accurately, and improving the quality and efficiency of services in the interbank bond market. Firstly, it enhances the flexibility of fund utilization, prioritizing support for key areas of M&A. It supports raising funds directly for paying M&A consideration, repaying M&A loans, etc., and can replace the company's own funds spent on M&A activities in the past year, further broadening the scope of M&A support, and enhancing the flexibility and efficiency of fund utilization. At the same time, it clearly supports M&A activities that prioritize the transformation and upgrading of traditional advantageous industries, the development of strategic emerging industries, and the future industrial layout. Secondly, it optimizes the information disclosure mechanism to suit the needs of M&A business. Fully considering the actual needs of M&A transactions, ongoing M&A projects may simplify or exempt the disclosure of sensitive information such as the name of the target during the issuance stage to meet commercial confidentiality requirements. For completed projects, disclosures include the impact of M&A, synergy effects, etc. At the same time, it enhances the responsibilities of intermediaries, further strengthening the due diligence and ongoing management requirements of lead underwriters. Thirdly, it strengthens the convenience of issuance and mechanism innovation to improve service quality and efficiency. M&A bills are individually named and identified to highlight the attributes of M&A. A "green channel" for registration and issuance of M&A bills has been opened, with instant reporting and evaluation, dedicated personnel handling, effectively improving issuance efficiency. It supports companies in flexibly setting up hierarchical structures, conversion of shares, installment payments, and other personalized elements, encouraging companies to enhance risk-sharing mechanisms by adding protective clauses such as control change repurchase, improving investor acceptance and product market vitality. Next, the Trading Association will continue to explore and optimize the relevant mechanisms for M&A bills under the guidance of the People's Bank of China, broaden the financing channels for corporate M&A restructuring, stimulate the enthusiasm of various entities to participate in the M&A market, help build a new development pattern, and promote high-quality economic development.