While using bank loans to finance PE transactions is a common practice in developed markets, in China the cases of such practice are rarely seen until recently. With the rapid development of the M&A industry, the government’s continuing efforts to liberalize interest rate and promote banking reform, as well as the recent changes in the forex market, there is a trend that bank loans are becoming more regularly used by PE funds as a financing instrument in China related deals. In this brief, our lawyers have summarized the current regulatory environment and practices of obtaining bank loans in China for PE transactions. (Full text in Chinese only)