Government announces first batch of successful IP Financing Sandbox pilot cases and launches Pilot Patent Valuation Support Scheme
The Government announced today (September 30) that a first batch of seven pilot cases of the Intellectual Property Financing Sandbox (Sandbox) have successfully completed credit approval. The Government also launched the Pilot Patent Valuation Support Scheme (Pilot Scheme) to strengthen support for enterprises in valuation of their intellectual property (IP) assets. The two complementary measures not only signify an important step forward for Hong Kong in promoting enterprises' use of IP assets as a financing tool, but also help accumulate practical experience and enhance the relevant support measures for the further local development of IP financing, in line with the direction set out in the First Five-Year Plan for Economic and Social Development of the Hong Kong Special Administrative Region (2026-2030) (Hong Kong's First Five-Year Plan) and the Chief Executive's 2026 Policy Address to deepen Hong Kong's development as a regional IP trading centre.
The Central Government Offices, Photo source: reference image
The seven pilot cases that have successfully completed credit approval cover the electronics, construction, toy manufacturing and medical device sectors, involving IP assets comprising patents and trade marks, with loan amounts ranging from $1 million to $39 million. Details of the participating banks and enterprises are available at the Hong Kong Monetary Authority (HKMA)'s website (www.hkma.gov.hk/eng/news-and-media/press-releases/).
The Sandbox is an important initiative to promote IP financing under the Chief Executive's 2025 Policy Address. The Commerce and Economic Development Bureau (CEDB), the HKMA, and the Intellectual Property Department (IPD) jointly launched the Sandbox last December. Three major banks in Hong Kong and their corporate clients from different sectors, as well as professional services organisations, have actively participated in the Sandbox. The Sandbox provides a collaborative and risk-controlled environment for key stakeholders, including banks, enterprises and relevant professional services organisations, to collectively test out the full lifecycle of financing arrangements based on IP assets on a "pioneer and pilot" approach, thereby accumulating practical experience.
A Government spokesman said, "The first batch of successful cases fully demonstrates that, through the concerted efforts of the CEDB, the HKMA, the IPD, banks, enterprises and professional services organisations, Hong Kong can steadily explore IP financing, thereby unlocking a new financing channel for enterprises with quality IP assets, and facilitating the commercialisation of research and creative outcomes."
The spokesman continued, "By running pilot projects within the Sandbox, participating banks have been able to test the operation of IP financing in a risk-controlled environment, thereby accumulating experience in risk management, valuation and credit approval. We are pleased to note that, in the course of piloting within the Sandbox, banks have offered greater flexibility regarding loan amounts and financing terms, taking into account the value of the IP assets owned by enterprises."
The CEDB, the HKMA, and the IPD will continue to collect stakeholders' views and consolidate market feedback and experience in formulating the direction for advancing the next phase of the Sandbox, such as exploring an expansion in the number of participating banks and enterprises, encouraging more pilot cases, enhancing the IP valuation process, etc. At the same time, they will continue to work closely with banks and the professional services sector to deepen the market's understanding of IP financing and drive its development.
In addition, the Government launched the two-year Pilot Scheme through the Hong Kong Technology and Innovation Support Centre (HKTISC) to facilitate the advancement of the next phase of the Sandbox, strengthen relevant support measures, and enhance the local IP financing ecosystem. Adopting a matching grant model of 1 (Government): 1 (eligible small and medium-sized enterprise), the Pilot Scheme provides each enterprise of an approved application with a one-off funding capped at $80,000 to support its commissioning of a qualified service provider (mainly accountants, financial analysts and surveyors) to conduct valuation of its patents and other IP assets.
At the same time, where the IP assets of an approved enterprise comprise at least one Hong Kong patent that has undergone substantive examination, the HKTISC will, with the assistance of the IPD's patent examiners, provide the enterprise with a complimentary qualitative patent evaluation report that systematically analyses the overall quality of the patent by reference to several multidimensional indicators (notably the legal, technical and economic value of the patent) based on the national standard for one Hong Kong patent designated by the approved enterprise concerned. The results of such qualitative evaluation may serve as reference for valuation service providers in conducting the quantitative patent valuation. The aforesaid qualitative patent evaluation service is also made available to users as an optional value-added chargeable service.
The spokesman said, "The Pilot Scheme aims to leverage Hong Kong's world-class professional services to promote IP valuations, provide concrete reference data on enterprises' assets for credit financing, and drive a thriving and robust IP trading ecosystem. By providing high-quality and professional quantitative valuations and qualitative patent evaluations, the Pilot Scheme assists these enterprises to showcase the economic value and market potential of their intangible assets to financial institutions and investors, thereby boosting the confidence of financial institutions and investors to form strategic business partnerships with enterprises through investment or provision of financing."
Photo source: Design image
The Pilot Scheme is open for applications from today, and details of the eligibility requirements and application procedures of the Pilot Scheme are available at the IPD's website (www.ip.gov.hk/en/home/index.html).
The Government will continue to seize the opportunity brought by the country's support under the National 15th Five-Year Plan for Hong Kong to deepen its development as a regional IP trading centre, and adopt a multipronged approach to promote more IP financing and trading activities through the Sandbox, the Pilot Scheme and other related measures based on the blueprint set out in Hong Kong's First Five-Year Plan. The Government expects that, as these measures are progressively implemented and become increasingly mature, the local IP trading and financing ecosystem will be further enhanced, thereby consolidating Hong Kong's status and competitive edge as a regional IP trading centre.
