HKMA Says Banks in Intellectual Property Financing Sandbox Complete Financing Approvals for First Batch of Pilot Cases

Stock News
Sep 30

According to Zhitong Finance APP, on September 30, the Hong Kong Monetary Authority announced that banks participating in the intellectual property financing sandbox had completed financing approvals for seven pilot cases, covering industries such as electronics, construction, toy manufacturing and medical equipment, with loan amounts ranging from HK$1 million to HK$39 million, used for companies' daily operations, business expansion and marketing.

The first batch of pilot cases demonstrated the potential of using intellectual property such as patents and trademarks to obtain financing, laying a practical foundation for consolidating Hong Kong's intellectual property asset financing ecosystem. The Hong Kong Monetary Authority, together with the Commerce and Economic Development Bureau and the Intellectual Property Department, launched the intellectual property financing sandbox in December 2025, with support from the Hong Kong Association of Banks.

Three major banks in Hong Kong were the first to join the sandbox, testing intellectual property financing arrangements with corporate clients from different industries and professional service institutions in a risk-controlled environment. By incorporating intellectual property valuation reports provided by valuation institutions into the credit assessment and approval process, banks can increase borrowers' loan amounts or offer more favorable borrowing rates based on independent professional valuations, thereby enhancing the financing capacity of small and medium-sized enterprises with abundant intellectual property assets.

The first batch of pilot cases provided valuable practical experience for banks, valuation institutions and other relevant professional sectors. Sandbox participants also believed that the intellectual property financing ecosystem could be further improved in other areas in the future, including strengthening support for intellectual property-related costs, optimizing the intellectual property valuation process, and raising market awareness and relevant professional capabilities. The Hong Kong Monetary Authority will continue to work closely with the government, the Hong Kong Association of Banks, the banking industry and other relevant stakeholders to promote Hong Kong's development as a regional intellectual property trading center.

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