Silicon Valley Bank’s joint venture in China said its operations have been independent and stable, seeking to calm local clients amid its US parent’s collapse.
(Bloomberg) — Silicon Valley Bank’s joint venture in China said its operations have been independent and stable, seeking to calm local clients amid its US parent’s collapse.
SPD Silicon Valley Bank Co. has always operated in a stable manner in accordance with Chinese laws and regulations with a standard governance framework and independent balance sheet, the joint venture between Shanghai Pudong Development Bank and SVB said on its WeChat account Saturday. Founded in August 2012 as the first tech-focused bank in China, it has committed to serve China’s science and innovation enterprises, the venture said.
SVB became the biggest US lender to fail in more than a decade after a tumultuous week that saw an unsuccessful attempt to raise capital and a cash exodus from the tech startups that had fueled the company’s rise. Regulators stepped in and seized it Friday in a stunning downfall for a lender that had quadrupled in size over the past five years.
Just hours earlier, Shanghai Pudong had given SVB a clean bill of health, underscoring how sudden its downfall was. The Shanghai company said the joint venture isn’t affected by the turmoil surrounding the US lender, and urged clients to stay calm.
The joint venture had a registered capital of 2 billion yuan ($289 million) as of the end of June, with its Chinese and US parents each holding half of the shares, according to Shanghai Pudong’s public filings. The venture had total assets of 21.3 billion yuan and recorded a net loss of 5.5 million yuan in the first half of 2022, according to its filings.
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