Yes, according to Article 3 of the Guidelines for Risk Management of M&A Loans of Commercial Banks (No.5 [215] of the Banking Regulatory Commission)? The term "M&A" as mentioned in these Guidelines refers to the trading behavior of domestic M&A enterprises in order to merge or actually control the established and going-concern target enterprises or assets by transferring existing shares, subscribing for new shares, or acquiring assets and undertaking debts.

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Therefore, the acquisition of small shares with less than 5% cannot be made through domestic bank loans, and domestic bank loans are all about the acquisition of more than 5% of the shares. However, if the target is overseas, you can lend money through overseas banks, and there is no restriction.

at the same time, if it is a small equity acquisition (less than 5%) in China, in addition to bank loans, it can be financed through merger and acquisition funds, mezzanine financing and trust.