Yes, according to Article 3 of the Guidelines for Risk Management of M&A Loans of Commercial Banks (CBRC Order No.5 [20 15])? The term M&A as mentioned in these Guidelines refers to the transaction behavior of M&A enterprises in China to merge or actually control the target enterprises or assets that have been established and continue to operate by transferring existing shares, subscribing for new shares, acquiring assets and assuming debts.

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Therefore, less than 50% of the small equity acquisition cannot be through domestic bank loans, and domestic bank loans are to acquire more than 50% of the equity. However, if the target is overseas, you can lend money through overseas banks without restrictions.

At the same time, if it is a small equity acquisition in China (below 50%), in addition to bank loans, it can also be financed through M&A funds, mezzanine financing, trust and other means.