The CBRC has some special risk management requirements for commercial banks to provide M&A loans, including:

1. Sound risk management and effective internal control mechanism;

2. The capital adequacy ratio is not less than10%;

3. The balance of all M&A loans of commercial banks shall not exceed 50% of the bank's net Tier 1 capital in the same period;

4. The M&A loan balance of a commercial bank to a single borrower shall not exceed 5% of the bank's net Tier 1 capital in the same period;

5. The ratio of M&A loan to M&A transaction price should not be higher than 60%;

6. The term of M&A loan is generally not more than 7 years;

7. Commercial banks should have professionals who are familiar with M&A-related laws, finance, industry and other knowledge, commensurate with the scale and complexity of M&A loan business.