The China Banking and Insurance Regulatory Commission is openly soliciting opinions on the "Draft Measures for the Management of Mergers and Acquisitions Loans by Commercial Banks."

The Smart Finance APP learned that on August 20, the China Banking and Insurance Regulatory Commission publicly solicited opinions on the "Administrative Measures for Mergers and Acquisitions Loans for Commercial Banks (Draft for Soliciting Opinions)". Among them, it is mentioned that equity participation mergers and acquisitions loans refer to loans that support a single acquirer to participate in the target company, but do not achieve control over the target company, with the condition that the proportion of equity acquired in the target company in a single transaction shall not be less than 20%. If a single acquirer already holds 20% or more of the target company's equity and wishes to further increase their stake in the target company without gaining control, they can apply for an equity participation mergers and acquisitions loan, with the condition that the proportion of equity acquired or subscribed in a single transaction shall not be less than 5%.