The Shenzhen Stock Exchange recently issued the second phase of the China Technology Exchange/Zhongguancun Sci-Tech Financing Guaranty/Changjiang intellectual property asset special support plan, with an issuance scale of 202 million yuan ($29.35 million) and coupon rate of 3 percent.

The Beijing-based Zhongguancun company, serving as the credit enhancement institution, provided guarantee services related to the special plan and basic assets.

The China Technology Exchange served as the original equity holder; Changjiang Asset Management based in Shanghai served as the plan manager and sales agency; and Vocation International Assets Appraisal served as the IP assessment and cash flow forecast agency.

More than 10 investment institutions competed to participate in the second phase of the special plan.

Of them, Bank of Beijing, China Minsheng Bank, Shanghai Pudong Development Bank, Bank of China, China Merchants Bank and Bank of Shanghai won a place to be investors, said a spokesperson of the special plan.

The warm market response reflected the investors' recognition of the original equity holder, credit enhancement institution, enterprises in the pool and the relevant issuing institutions, the spokesperson added.

The second phase has provided innovative IP financing solutions for 15 high-tech enterprises, with the financing amount of a single enterprise ranging from 1 million to 30 million yuan.

They include six specialized and sophisticated enterprises that produce new and unique products, which own 35 invention patents and nine patents for utility models in such fields as new-generation information technology and digital creativity. The value of these patents is estimated to reach 230 million yuan.

Intellectual property securitization is one of the key tasks in Beijing's drive to develop the China (Beijing) Pilot Free Trade Zone and the Integrated National Demonstration Zone for Opening-Up the Service Sector. The issuance of the second phase will enhance the capital city's capacity for financial innovation in IP rights and broaden the financing channels of micro, small and medium-sized enterprises, according to the spokesperson.

On April 30, 2021, the Shenzhen Stock Exchange approved the China Technology Exchange/Zhongguancun Sci-Tech Financing Guaranty/Changjiang Phase 1-10 IP asset special support plan, worth no more than 1 billion yuan. It is Beijing's first project of IP securitization through patent licensing.

In December of that year, the first phase of the plan was issued, with an issuance scale of 337 million yuan. It benefited five energy conservation and environmental protection enterprises, seven new-generation IT enterprises, two medical enterprises and one modern agricultural enterprise.