The Hong Kong Monetary Authority (HKMA), working with the Commerce and Economic Development Bureau (CEDB) and the Intellectual Property Department (IPD), has launched an Intellectual Property (IP) Financing Sandbox to support pilot sectors in using IP assets to obtain financing. The Sandbox is designed as a collaborative, risk-controlled environment for banks and multidisciplinary participants including IP valuation firms and legal practitioners to test end-to-end IP financing arrangements based on assets such as patents, trademarks and copyrights. It is intended to help banks develop and refine IP financing structures with guidance from the HKMA, CEDB and IPD, and to build practical experience in serving innovative enterprises, particularly small and medium-sized enterprises that are IP-rich but lack tangible collateral. Three major Hong Kong banks have joined as inaugural participants and have invited interest from biotechnology, electronics and technology clients for pilot trials.