According to the recently released Guangzhou Business Environment Report (2022), there were 118,000 tech enterprises, 2,995 high-tech enterprises, as well as 225 incubators and makerspaces in Tianhe district by the end of 2021, all ranking first in Guangzhou.

Tall buildings tower over Tianhe district. [Photo/WeChat account: tianhefabu]

In recent years, Tianhe has been developing financing by pledging intellectual property rights (IPR) to improve its sci-tech innovation atmosphere and business environment.

The district tried to understand the financing requirements of tech enterprises through field visits to 26 enterprises like XPeng Motors and Kugou Music to improve its IPR pledge financing services. It also carried out a symposium to advance IPR securitization, inviting representatives from 22 enterprises and financial institutions to offer suggestions.

From 2020 to 2021, the district completed a total of 3.43 billion yuan ($499.6 million) of IPR pledge financing. In 2021 alone, it completed 2.63 billion yuan in IPR pledge financing, an increase of 2.28 times year on year.

The district has also formulated preferential policies for IPR pledge financing, as well as launched a series of financial products. To date, four preferential policy promotion meetings have been carried out, and three enterprises have completed IPR pledges. It has also assisted enterprises in obtaining credit lines issued by banks, totaling 166 million yuan.

IPR pledge financing service stations were set up in industrial parks in Tianhe, through which a normal investigation mechanism for enterprises' IPR financing needs and financial institutions' related financing products will be created. In addition, an IPR financing project and product resource database will be formed.

By the end of June, a total of 1.4 million yuan of IPR insurance had been completed, while a multi-party cooperation mechanism for IPR insurance has been basically established to disperse risks in the process of IPR application, protection, and value transformation of enterprises.