Shanghai Rural Commercial Bank Accepts Use of Geographic Trademarks as Intangible Collateral


Shanghai Rural Commercial Bank hopes to facilitate financing to rural enterprises in the region by accepting “geographic trademarks” as intangible collateral for loans.

On 10 November Shanghai Rural Commercial Bank held a work meeting on Chongming Island for the use of geographic trademarks as loan collateral to help drive rural village revitalisation in the Shanghai region.

Shanghai Rural Commercial Bank said it is the first financial institution in Shanghai to accept the use of geographic trademarks as collateral.

“Geographic trademarks” are defined as “trademarks that indicate a certain commercial product originates from a certain region, and whose specific qualities, reputation or other traits are mainly determined by the natural factors or cultural factors of this region.”

Shanghai currently has a total of 18 trademarks which are considered “geographic trademarks,” including Nanhui Peaches (南汇水蜜桃), Malu Grapes (马陆葡萄) and Chongming Rice (崇明大米), a well as 8 geographic trademark-protected products.

94 enterprises in Shanghai have exclusive geographic trademarks, while Shanghai Rural Commercial estimates that the value directly contributed by geographic trademarks in the region exceeded 800 million yuan in 2020.

In October of this year Shanghai Xinfeng Milu Guoshu Specialist Cooperative (上海新凤蜜露果蔬专业合作社), situated in Hainan County in Shanghai’s Pudong New District, used the intangible value of the “Nanhui Peaches” geographic trademark as collateral for a 1 million yuan loan from Shanghai Rural Commercial Bank.