China Aircraft Maintenance Engineering Co Ltd pledges a patent for a loan of 10 million yuan to acquire three Boeing B737-500 aircrafts from ANA. [Photo/ntfabu.com]

Tongzhou district – administered by Nantong in East China's Jiangsu province – held a promotion conference on intellectual property pledge financing in late April, aimed at building an IP pledge financing system that is led by the government, participated in by multiple parties and shares benefits and responsibilities.

It is reported that last year IP pledge financing in Tongzhou involved the fields of high-end textiles, intelligent manufacturing, medical treatment and health and electronic equipment, with the financing amount increasing by 336 percent over the previous year, hitting a new high.

In recent years, Tongzhou district has focused on the development needs of innovative enterprises and increased rewards and funding for corporate patents to encourage enterprises to carry out technological innovations.

The district has continuously pushed forward IP pledge financing in a bid to accelerate a two-way transformation between intellectual property and assets, to facilitate transformation and application of patents and to help enterprises alleviate the problem of capital shortage.

In addition to subsidy policies, Tongzhou district also created new ways of combining online platforms and on-site visits to enterprises, and set up monthly matchmaking conferences to provide a platform for communication and cooperation between enterprises and banks.

The domestic aviation industry has begun to revive since the second half of last year, and the aircraft dismantling and maintenance business is booming. China Aircraft Maintenance Engineering Co Ltd, a Tongzhou-based private company engaged in aircraft maintenance, urgently needed funds to acquire three Boeing B737-500 aircraft.

"We pledged a patent for a loan of 10 million yuan ($1.6 million). It only took two days to complete the whole process of pledge financing from signing the contract to pledge registration and credit granting, which effective alleviated the difficulty of cash flow shortage," said Shen Binglong, the person in charge of China Aircraft Maintenance Engineering.