On Monday 19 August, the China Bank Insurance Regulatory Commission, the National Intellectual Property Administration and the National Trademark Administration jointly released the Notice on Further Strengthening IP Pledge Financing Work (Yin Bao Jian Fa  No. 34). The Notice was formulated to boost the use of intellectual property as a financing tool for enterprises. A total of 19 measures were indicated under different areas, including:
- Optimisation of the IP pledge financing service system: extending support to commercial banks and financial institutions accepting IP pledges as loan collaterals for innovative tech enterprises, through e.g. separate credit plans, special assessment incentives, etc. In order to do so, sound in-house management mechanisms as well as innovative evaluation, screening, monitoring and evaluation mechanisms (e.g. based on big data, cloud computing technologies, etc.) should be explored and adopted by banks and financial institutions.
- Strengthening IP pledge financing innovation: encouraging commercial banks to provide portfolio loans based on patents, trademarks and copyrights. The feasibility of other innovative mechanisms based on geographical indications and integrated circuit designs should also be explored to expand financing channels. Cooperation mechanisms between banks and investment funds is encouraged to ensure support to IP pledges with strong competitiveness and market prospects.
- Optimisation of IP pledge financing risk management: including tolerating a higher bad loan ration in IP pledge financing, training qualified IP pledge financing specialists, strengthening dynamic management of collaterals, strictly monitoring the business operations of borrowers, establishing a reward and punishment credit system, etc.