Government to expand IP financing scheme after successful trial

By the Editorial Team · Thursday, October 1, 2026

The Hong Kong government is expanding its intellectual property financing scheme after a successful nine-month pilot that helped companies use IP assets to secure larger loans at lower interest rates. This expansion aims to support SMEs and key industries in global growth while promoting broader adoption of IP valuation through new grant programs.

The Hong Kong government announced plans to expand its intellectual property (IP) financing scheme following a successful nine-month pilot involving seven corporate users from various industries. The program, which commenced on a trial basis, demonstrated that incorporating IP assets into loan assessments helped companies reduce borrowing costs and secure larger loans.

Carmen Chu Lap-kiu, executive director of banking supervision at the Hong Kong Monetary Authority (HKMA), highlighted that the scheme contributed to refining the city’s IP ecosystem by enhancing valuation practices, lowering professional service costs, and raising market awareness. She noted that the initiative supports the development of the Northern Metropolis and key industries while assisting small and medium-sized enterprises (SMEs) in expanding globally.

The pilot, conducted by the Commerce and Economic Development Bureau, the Intellectual Property Department, and the HKMA, involved banks including Bank of China (Hong Kong), HSBC, and Standard Chartered Hong Kong. Participating companies spanned sectors such as electronics, construction, toy manufacturing, and medical devices, securing loans ranging from HK$1 million to HK$39 million. By factoring IP valuations into lending decisions, banks increased loan amounts by 25 to 50 percent and lowered interest rates by 25 to 150 basis points.

Helen Chung Chi-ching, deputy secretary for commerce and economic development, emphasized that the scheme addresses the financing challenges faced by companies possessing high-quality IP but lacking physical collateral. Chung said the government hopes to attract a broader array of enterprises from diverse industries to participate in future rounds to further gauge market responses and refine support measures.

Among the pilot participants, Man Yue Technology Holdings, which holds over 100 patents, utilized the funds to develop products, enhance production lines, and support projects including power supply solutions for AI data centers and new energy initiatives. Eugene Chan Yu-ching, the company’s executive and managing director, described the recognition of IP as collateral by financial institutions as a valuable reputational asset.

Similarly, AirHouse International Trading Company, a building technology firm with more than 300 patents worldwide, benefited from the scheme’s financing options. Chairman Eric Kwong Hoi-fung noted that the program enabled the company’s ongoing research and development and global expansion plans by providing more diversified capital sources.

In addition to the financing scheme expansion, the government launched a two-year Pilot Patent Valuation Support Scheme through the Hong Kong Technology and Innovation Support Centre. This new initiative offers one-time grants up to HK$80,000 on a matching basis to assist SMEs in commissioning qualified service providers to conduct IP valuations, further promoting the use of IP as a financial asset.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.