Preparatory work to establish an intellectual property trading market for small and medium-sized enterprises (SMEs) will begin soon, according to the provincial government.

The pilot project will include trade platforms for intellectual property as well as debt and equity to expand financing channels while including venture capital and private funds.

An equity transaction market is intended to help SMEs with high growth potential get financing directly from the market, provincial authorities said.

SMEs account for 99 percent of total enterprises in China and contribute 60 percent to the nation's GDP, according figures from the Henan Technology Stock Exchange.

Once the pilot project starts, organizers expect 300 to 400 SMEs will find financing annually with at least 20 billion yuan in funds raised from the market

(Source: China Daily)