China has launched a national pilot project to provide loans to companies that are eligible to put up their intellectual property rights (IPR) like patent as collateral.

 

At Friday's launching ceremony in Guangzhou, capital of southern Guangdong Province, six Chinese lenders, including Industrial and Commercial Bank of China and China Construction Bank, signed agreements or intent worth 1.308 billion yuan (186.86million U.S. dollars) in loans with 18 enterprises.

 

The State Intellectual Property Office (SIPO) had decided to launch similar projects in cities including Beijing and Shanghai, said Ma Weiye, director of the patent management department under the SIPO.

 

"In these cities, both banks and enterprises have a strong demand for IRP-backed loans," said Ma. "This is very good because the purpose of China's IPR strategy is to increase the application of patent."

 

Previously, banks in China offered mortgage loans mainly on tangible assets like plant and equipment, leaving technological innovation-oriented enterprises difficult to get financial support from banks.

 

Luo Zhizhao, head of a cable manufacturer in Guangzhou, said his company would get a loan of 10 million yuan from bank thanks to the project.