In a significant move to bolster innovation among small and medium-sized enterprises (SMEs), Shanghai has stepped up its efforts to empower intellectual property (IP) financing, leveraging intangible assets to drive high-quality economic development.
In 2024, Shanghai recorded 2,223 patent and trademark pledge financing registrations, amounting to a total of 32 billion yuan ($4.42 billion). This represents a year-on-year increase of 62.3 percent in the number of transactions and a 40.6 percent increase in the total amount financed. Loans under 20 million yuan accounted for approximately 90 percent of these transactions.
The Shanghai Intellectual Property Exchange Center now provides integrated services for patent confirmation, valuation, consultation, and disposal. The Shanghai Municipal Financing Guarantee Center has adopted the center's evaluations, leading to a more efficient and cost-effective IP pledge financing guarantee model.
To date, Shanghai has established 15 IP Financial Innovation Centers and 125 Patent and Trademark Pledge Loan Special Services within local banks. New models, including IP license revenue pledge loans and IP merger and acquisition loans, have been introduced. The city recently launched its first fully market-oriented IP securitization project and is exploring new trust models targeting IP revenue.
