Hong Kong to expand IP financing sandbox after successful pilot

Key facts

• Hong Kong will expand its intellectual property (IP) financing sandbox.
• Seven companies participated in a nine-month pilot of the sandbox.
• The pilot helped participating firms secure loans ranging from HK$1 million to HK$39 million.
• The sandbox aims to help innovative companies, especially SMEs, leverage IP assets for financing.
• Participating banks incorporated IP valuation reports into their credit assessment processes.
• The initiative is a collaboration between the HKMA, CEDB, and IPD.

The Hong Kong government plans to expand its intellectual property (IP) financing sandbox scheme, following a successful nine-month pilot that saw seven companies secure loans by leveraging their IP assets. The initiative, a collaboration between the Hong Kong Monetary Authority (HKMA), the Commerce and Economic Development Bureau (CEDB), and the Intellectual Property Department (IPD), aims to improve access to finance for innovative enterprises, particularly small and medium-sized enterprises (SMEs), that possess valuable IP but lack tangible assets.

The pilot, launched in December 2025, involved three major banks – Bank of China (Hong Kong) Limited, The Hongkong and Shanghai Banking Corporation, and Standard Chartered Bank (Hong Kong) Limited – testing IP financing arrangements. These banks incorporated IP valuation reports from independent service providers into their credit assessment processes, enabling them to offer higher loan amounts or more favorable interest rates. The completed pilot cases, with loan amounts ranging from HK$1 million to HK$39 million, covered sectors such as electronics, construction, toy manufacturing, and medical devices.

Participants identified areas for enhancement within the broader IP financing ecosystem, including strengthening funding for IP-related professional services, optimizing valuation processes, and increasing market awareness and professional capabilities. The HKMA stated its intention to continue working with stakeholders to develop Hong Kong as a regional IP trading center.