Read More
Hong Kong has approved credit for the first batch of seven pilot cases under its Intellectual Property Financing Sandbox, with loan amounts ranging from HK$1 million to HK$39 million, and launched a two-year matching grant scheme to help enterprises value their patents and other intellectual property (IP) assets.
ADVERTISEMENT
SCROLL TO CONTINUE WITH CONTENT
The seven pilot cases that have completed credit approval cover the electronics, construction, toy manufacturing, and medical device sectors that involve IP assets comprising patents and trademarks.
The Hong Kong Monetary Authority’s executive director of banking supervision, Carmen Chu Lap-kiu, said that after approving seven pilot cases, banks have learned from the sandbox that IP valuation reports can be integrated into credit approval, with valuation results boosting a company's credit score, significantly raising loan amounts and securing lower interest rates.
Chu revealed that after taking IP valuation into account, combining IP and other intangible assets with traditional tangible assets has increased approved loan amounts by an average of 25 to 50 percent, while loan interest rates can be reduced by 25 to 150 basis points, fully demonstrating the tangible benefits brought by the financialization of intellectual property.
The HKMA plans to expand the sandbox’s testing scope in the next phase by inviting more banks, cross-industry enterprises, and relevant professional service providers to participate, Chu said.
The government has also launched a two-year Pilot Patent Valuation Support Scheme through the Hong Kong Technology and Innovation Support Centre to facilitate the next phase of the sandbox, strengthen related support measures, and enhance the local IP financing ecosystem.
Under a 1:1 matching grant model between the government and eligible small and medium-sized enterprises, the scheme provides each approved enterprise with one-off funding capped at HK$80,000 to commission a qualified service provider – mainly accountants, financial analysts, and surveyors – to value its patents and other IP assets.
The expansion aims to improve the IP financing ecosystem further and better support the development of the Northern Metropolis, Chu said, stressing that no specific target has been set for the number of participating banks in the overall sandbox program.
Hong Kong’s three note-issuing banks, Bank of China (Hong Kong), HSBC, and Standard Chartered Hong Kong, are among the program participants.
Asked whether mainland enterprises can join the sandbox, Chu said local SMEs are currently given priority, but mainland companies can also take part as pilot participants by setting up a company in Hong Kong and using the city as a platform for IP financing.
The government said measures will further develop local IP financing, which was an important initiative to promote IP financing under the 2025 Policy Address, and was reinstated in Hong Kong’s first Five-Year Plan for economic and social development and the 2026 Policy Address to deepen the city’s development as a regional IP trading center. The sandbox was jointly launched by the Commerce and Economic Development Bureau, the HKMA, and the Intellectual Property Department last December.
