China’s financial regulator has announced a pilot program to ease rules on merger and acquisition (M&A) loans for technology firms.

The National Financial Regulatory Administration revealed that the program will increase the proportion of loans allowed for M&A transactions to 80% of the total transaction value, up from the current cap of 60%.

The initiative will also extend the maximum loan term to 10 years from the current limit of seven years.

This pilot program will be implemented in 18 cities, including Beijing and Shanghai, to support the growth of the technology sector in the country.