China Bank Supervisory Committee (CBSC) recently issued the Guideline for Commercial Banks to Improve and Enhance Financial Service to Hi-Tech Enterprises and the Implement Principle of Financial Support Policy to State-Level Key Scientific and Technological Projects. According to the two documents, hi-tech firms can use their stock, IPR rights, stock ownership as well as other intangible asset as mortgage as applying loans from banks. Experts believe that this will benefit the establishment of a favorable financial environment for independent innovation, and lead the banks to improve their service to relevant enterprises and projects.

According to the Guideline, commercial banks will try more ways of mortgaging, such as stocks, stock ownership, securities and insurance documents, and even IPR from those hi-tech enterprises approved by the State.

Credits to small technology firms can be mortgaged or guaranteed with the enterprise's asset, owners or the biggest shareholder's property, and according to the guideline, mortgage, property and guarantee can be combined for applying loans. Several banks can jointly provide loans to those needing a big amount of loans share the risk and benefit.

A high-level manager of a hi-tech business says that this way will make loaning much easier, as China's risk-based investment is still in development, and most of hi-tech companies rely on banks for development. Although banks has enforced their aids to medium-small-sized firms, but as the firms are too small to have enough mortgage, so they still feel hard to get necessary loans, he added.

Mr. Zhao Xijun, vice-director of Finance and Monetary Institute of China's Renmin University, points out that with some laws and regulations will come out, such as the Law of Property, the evaluation and management system to IPR will be more standardized, the value of intangible asset will be given more and more aspect. This will reduce the risk of banks in loaning with intangible asset as mortgage.

(www.stocknews.com.cn)