Guangdong Encourages Commercial Banks to Set Reasonable Loan Rates for Eligible Industrial Chain M&A Projects

Deep News11-26

On November 26, the "Guangdong Province Financial Support Plan for Industrial Chain Integration and M&A" was officially released. The document encourages commercial banks to determine reasonable loan interest rates for qualified industrial chain integration and M&A projects based on market-oriented and legal principles, considering factors such as client credit ratings and loan amounts.

Banks are urged to prioritize financing for corporate digital-intelligent transformation and industrial chain extension projects. Special credit support should be provided for M&A initiatives involving strategic industries including electronic information manufacturing, new energy vehicles, biomedicine and medical devices, artificial intelligence and robotics, and new materials. Within policy limits, preferential terms such as interest rates and loan tenures should be offered, with appropriate alignment to industry cycles.

The plan also aims to reduce corporate financing costs, proposing fiscal interest subsidies for eligible loans to advanced manufacturing and technology enterprises.

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