Xuhui District - Caohejing Development Zone IP ABS gets listed on the Shanghai Stock Exchange. [Photo/WeChat ID: Shanghai_IPA]

The Xuhui District - Caohejing Development Zone Intellectual Property Asset-Backed Securities (IP ABS) was listed on the Shanghai Stock Exchange on Nov 22.

This marked the launch of the Sinolink Securities Asset Management-Xuhui Caohejing IP Phase 1 Asset-Backed Special Plan and the issuance of Shanghai's first fully market-based enhanced IP securitization project.

This milestone underscores Shanghai's commitment to leveraging IP for financial innovation and economic growth.

Rui Wenbiao, director general of the Shanghai Intellectual Property Administration, highlighted the importance of IP finance in supporting high-quality economic development. He noted that Shanghai has registered over 1,800 cases of patent and trademark pledge financing this year, totaling 23.4 billion yuan ($3.23 billion). Xuhui district, known as a national model for IP protection, is leading the way with this groundbreaking project.

The securitization product, managed by Sinolink Securities Asset Management and guaranteed by Shanghai Rural Commercial Bank, has a total shelf size of 500 million yuan and an initial issuance of 59 million yuan. Key features include:

Efficiency: Companies can obtain direct financing by issuing bonds, turning IP into tradable assets.

Market-Based Guarantees: Banks provide guarantees, ensuring repayment in case of default.

Low Interest Rates: The project achieved a record low issuance rate for IP asset-backed securities in Shanghai, with an actual financing rate of less than 2 percent for a one-year term, much lower than the current one-year loan prime rate of 3.1 percent.

Broad IP Coverage: The product includes 7 invention patents, 13 trademarks, and 2 software copyrights, with a total assessed IP value of 43.9 million yuan.