IP financing boost for SMEs

Shenzhen is adopting a new way of supporting Small and Micro Enterprises (SMEs) in securing financing, based on their intellectual property. According to local media, SMEs with valuable IP will be fast-tracked in approvals for loans from financial institutions by pledging their patents, trademarks, and copyrights as collateral.

During the epidemic period, 41 IP-backed financing projects have been approved for enterprises, worth 1.032 billion yuan. Two examples of this are Shenzhen Communications Bank, which gave 10 million yuan to Shenzhen Xinyang Weikang Technology for the research and production of diagnostic kits, and Shenzhen Pufa Bank, which 4.7 million yuan to Shenzhen Pubo Technology.

At the same time, the city has approved the issuance of listed products on the Shenzhen stock exchange which are securitized by intellectual property rights. These are set to raise 1 billion yuan of funds.

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