Chai Baocheng, President of Tianjin Baocheng Machinery Group Co., Ltd., owns over 2 billion yuan worth of fixed assets and 30 years of business management experience. He is also a member of the national committee of CPPCC. On this year's two sessions of NPC and CPPCC, he proposed to focus on IP trading intermediary service market."IP is originally the wealth of enterprises. Some SMEs having no mortgages can solve their financial problems in pledge of IP," said Chai in an interview with China IP News.

It might be the years of experience in business operation that makes Chai understand the importance of cash flow for enterprises. Private SMEs are bound by narrow financing channels. It is an important tool for enterprises to overcome cash difficulties by new means of financing through IP trading intermediary service market.

"Since IP trading market as a new thing is at the stage of growth and development, problems exist in practical operation," said Chai. In his proposal, he listed the major problems in IP trading market, including the backward trading mechanism, low financing efficiency and lacking of compound talents, of which, inadequate intermediary service is the most serious.

Upon the problems mentioned above, Chai advised to establish an inter-regional intermediary service system based on the law of corporation and featuring voluntary shareholding and considerable funds. 

"I think we can have a dig at IPR securitization, relying on the fees of license use of IPR and issuing mortgage-backed securities to finance. Knowledge assets and financial capital can be effectively integrated to realize a sound circulation between fund demand and supply," said Chai when talking about how to explore new approaches in IP trading.[Chinese version is available on sipo.gov.cn]

(Source: IPR in China)