Recently, three authorities including the China Banking and Insurance Regulatory Commission ("CBIRC") have jointly issued the Circular on Further Strengthening the Intellectual Property Pledge Financing (the "Circular").
Highlights of the Circular include: 1. stressing the optimization of the service system for intellectual property (IP) pledge financing; 2. ramping up service innovation for IP pledge financing; 3. calling for improving risk management for IP pledge financing; and 4. improving safeguard measures for IP pledge financing. Among others, the Circular calls on banks and insurance institutions to support innovation-oriented and technology-oriented businesses with development potential. Meanwhile, large banks and joint-stock banks are required to designate specific departments to take charge of the work on IP pledge financing, and commercial banks are encouraged to support the development of IP pledge financing business, by means of separate quotas of credit loans, special assessment and incentives, etc., as long as risks are under control.