HKMA: Participating banks in the intellectual property financing sandbox have completed the financing approval for the first batch of pilot cases.

On September 30, the Hong Kong Monetary Authority (HKMA) announced that participating banks in the intellectual property (IP) financing sandbox have completed the financing approval for seven pilot cases, covering industries such as electronics, construction, toy manufacturing and medical equipment. Loan amounts ranged from HK$1 million to HK$39 million, used for enterprises' daily operations, business expansion and marketing. The first batch of pilot cases demonstrated the potential of using IP such as patents and trademarks to obtain financing, laying a practical foundation for consolidating Hong Kong's IP asset financing ecosystem. The HKMA, together with the Commerce and Economic Development Bureau and the Intellectual Property Department, launched the IP financing sandbox in December 2025, with the support of the Hong Kong Association of Banks. Three major banks in Hong Kong were the first to join the sandbox, testing IP financing arrangements with corporate clients from different industries and professional service providers in a risk-controlled environment. By incorporating IP valuation reports provided by valuation institutions into the credit assessment and approval process, banks can, based on independent professional valuations, increase borrowers' loan amounts or offer more favorable borrowing rates, thereby enhancing the financing capacity of SMEs with abundant IP assets. The first batch of pilot cases provided valuable practical experience for banks, valuation institutions and other relevant professional sectors. Participating institutions in the sandbox also considered that the IP financing ecosystem could be further improved in other aspects in the future, including strengthening support for IP-related expenses, optimizing the IP valuation process, and raising market awareness and relevant professional capabilities. The HKMA will continue to work closely with the Government, the Hong Kong Association of Banks, the banking industry and other relevant stakeholders to promote Hong Kong's development as a regional IP trading center.