China's first intellectual property (IP) securities product for modern smart agriculture was released by Tianhe district on the Shenzhen Stock Exchange on April 22.

The product had an initial issue scale of 200 million yuan ($27.61 million), with an interest rate of 2.2 percent, the lowest ever for a coupon rate of its kind.

It also took the lead in adopting the IP pledge loan model in transactions, which means enterprises in need of financing pledge their IP to and get loans from Guangdong Agribusiness Group Corporation. Then, the company transfers the loan rights to special purpose vehicles (SPV), listing and issuing securities products. This model simplifies the transaction structure procedures.

Tianhe's IP securities product for modern smart agriculture is released on the Shenzhen Stock Exchange on April 22. [Photo/Yangcheng Evening News]

Tianhe district has been a frontrunner in promoting the high-quality development of IP. In 2023, the district saw a number of 9,438 invention patent grants, with a rate of 189.7 per 10,000 people. Moreover, the high-value invention patents per 10,000 people stood at 78.7. The district also boasted valid registered trademarks with a total of 544,197 by year-end, and its IP pledge financing topped 5.32 billion yuan.

Besides, 221 patents were licensed in Tianhe last year, a year-on-year increase of 39.1 percent, and 5,127 patents were transferred, up 41.6 percent year-on-year.