On April 30, Beijing’s first project of intellectual property securitization through patent licensing was approved by Shenzhen Stock Exchange (SSE). 

The project, worth no more than 1 billion yuan, will be issued by SSE, with ZGC Sci-tech Guarantee Co. served as its credit enhancement and guarantee institutions, China Technology Exchange as the original equity holder, Yangtze River Asset Management Co. and Yangtze River Securities as plan managers and sales agencies, United King &Woo Law Firm, United Credit, Zhongjinhao and China Faith Appraisers and other companies as professional service providers.  

Under the project, stable and predictable cash flows are packaged and securitized through patent relicensing transactions, further expanding the financing channels for high-tech enterprises with high-value patented technology. The product can also acquire customers in batches and be reviewed independently. 

In recent years, based on the principle of “facilitating financing with guarantees”, ZGC Sci-tech Guarantee Co. has launched a series of pledge financing products by working with other institutions in in-depth development of new products. In 2020, the program of “IP Financing Guarantee” alone provided 31 new guarantees worth 55.9 million yuan, an average of 1.8 million yuan per firm.