(Yicai) March 6 -- China has kicked off a pilot program relaxing rules on merger and acquisition loans for technology companies in 18 cities, including the country’s four first-tier cities.

The National Financial Regulatory Administration will ease some clauses of the Guidelines for Risk Management of Commercial Bank Mergers and Acquisitions, including raising the maximum loan-to-value ratio to 80 percent from 60 percent and the maximum loan term to 10 years from seven years, an NFRA official said at a press briefing yesterday.

The pilot program aims to channel more financial resources into technological innovation, accelerate the development of a financial system tailored to support tech innovation, and promote the growth of new quality productive forces, the self-reliance of high-level technology, and broader sci-tech advancement goals, the official noted.

Eligible institutions participating in the pilot programs are commercial banks, joint-stock commercial banks, and city commercial banks that meet certain criteria, such as sound operations, robust corporate governance, compliance with prudential regulatory indicators, and strong M&A loan services and risk control capabilities.

Meanwhile, the tech firms wishing to participate in the pilot scheme should demonstrate substantial research and development expertise, strong innovation capacity, high demand for technological upgrades, prospects for the commercialization of scientific achievements, and a good credit record.

Editor: Futura Costaglione