On April 11th, the first market-based credit-enhanced intellectual property asset-backed securities (ABS) project in China was successfully listed on the Shenzhen Stock Exchange.

The project, named Guojin Xinxin Nanjing Gulou Zhihui Drum Intellectual Property Asset Support Special Plan, selected high-quality companies to enter the pool and used bank guarantees to enhance credit, creating a two-way channel for companies to expand financing channels and capital market recognition of the value of intellectual property.

This innovation solved the pain point of using local state-owned enterprises as guarantors for intellectual property securitization products and realized an important innovation in the architecture of intellectual property securitization products. Some regions in Jiangsu are replicating this model to promote project issuance, while others are planning to reference this model to launch projects, providing a new path for promoting the vigorous development of intellectual property securitization projects throughout the country.

Source: Sina News