China Issues First 5G Technology Asset-backed Securities

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The southern Chinese tech hub of Shenzhen has just seen the launch of China’s first specialist 5G asset-backed security (ABS) that involve the use of intellectual property as collateral.

Shenzhen High-tech Investment Group Co., Ltd. (深圳高新投集团有限公司) launched the “Nanshan District High-tech Investment Intellectual Property Three Stage Asset-backed Plan (5G Specialisation)” (南山区高新投知识产权3期资产支持计划(5G专场)) on 17 September.

The product is reportedly the first 5G specialist asset-backed security, as well as the third securitised product based on intellectual property rights launched in the Nanshan district of Shenzhen.

The 5G ABS will involve funds of 455 million yuan, for the provision of loans by High-tech Investment Micro-Loan Co., Ltd. (高新投小额贷款有限公司) to borrowing enterprises.

Borrowing enterprises or their affiliates will be able to use their intellectual property rights as collateral with High-tech Investment Micro-loan.

Following the provision of subsidies by the Nanshan district government as well as fee discounts by Shenzhen High-tech Investment, a total of 18 participating enterprises are expected to enjoy real financing costs of just 3% per annum.

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