China Boosts Lending to Tech Start-ups Using Intellectual Property as Collateral

- China is injecting billions into tech start-ups and small companies by using intellectual property as collateral to stimulate loan demand and the economy. - Intellectual property-pledged financing loans surged 57% in the first half of 2024, reaching Rmb419.9bn, following a 75% increase in 2023. - The strategy aims to support innovative small companies amid a property sector slowdown and weak local government finances. - Smaller banks are stepping in to provide loans, recognizing intellectual property as legitimate capital, despite concerns over non-performing loans. - The policy is also aiding distressed companies in other sectors, with government incentives like interest rate subsidies encouraging banks to issue such loans. Source: [FT](https://www.ft.com/content/1f358db3-293f-4a53-a58a-fd70b9cee065)