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M&A lending now legal

“Groundbreaking” rules give domestic commercial banks important role

Date: 16 December 2008

The banking regulator has issued new rules which allow lending for M&A transactions, opening the door to leveraged buyouts in the PRC.

The Guidelines on Risk Management of Acquisition Loans of Commercial Banks were issued by the China Banking Regulatory Commission (CBRC) on December 6. They allow “strong” commercial banks to loan money to...

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