China’s financial regulator announced a pilot program to ease restrictions on merger and acquisition (M&A) loans for technology enterprises. The initiative, launched by the National Financial Regulatory Administration, aims to support industry growth by providing greater financial flexibility.
Under the new program, M&A loans will be allowed to cover up to 80% of a firm’s total transaction value, an increase from the current 60% limit. Additionally, loan terms will be extended to a maximum of 10 years, up from the previous seven-year cap.
The pilot program will be implemented in 18 cities, including key financial hubs such as Shanghai and Beijing. The policy shift aligns with China’s broader efforts to bolster its technology sector and enhance corporate financing options amid global economic uncertainties.
