A celebration is held for the issuance of the first county-level intellectual property securities in Zhangjiagang, Suzhou, Jiangsu province. [Photo/zjgonline.com.cn]

The first county-level intellectual property securities in China were issued in Zhangjiagang, Suzhou, Jiangsu province on Feb 11.

One hundred million yuan ($14.65 million) worth of securities, which have an AAA credit rating, were issued that day. A total of 111 patents owned by 13 companies, including Suzhou Liangchen Bio-pharm Technology Co and Eachy Biopharmaceuticals, are the underlying asset of the financial product.

Cai Jianfeng, mayor of Zhangjiagang, expressed hope that financial institutions can play a more active role in turning intellectual properties into funds, and that local companies can leverage financing to boost innovation.

Securitizing intellectual properties opens a new way of financing for technology companies that have strong innovation skills and huge growth potential. The newly issued securities will also help Zhangjiagang further explore new ways of IP financing.

Zhangjiagang is currently home to about 1,000 high-tech enterprises, more than 40,000 trademarks, and about 10,000 invention patents, according to the mayor. The city has raised over 5.5 billion yuan in funds through intellectual properties in recent years.