SVB Crisis: China Venture Of Collapsed US Lender Says Operations Have Been Stable, Independent

According to a statement issued on Saturday, SPD Silicon Valley Bank Co, which is a joint venture between Shanghai Pudong Development Bank and SVB, has always conducted its business in compliance with Chinese laws and regulations, with a standardized governance structure and an independent balance sheet. The joint venture has also reaffirmed its dedication to supporting China's scientific and innovative enterprises.

Silicon Valley Bank (SVB) became the largest US lender to collapse in more than a decade. The bank which had grown four-fold in size over the past five years, suffered a tumultuous week, including an unsuccessful capital-raising effort and a cash drain by tech startups that had been a key driver of the company's success.

The sudden downfall of the bank can be judged by the fact that Shanghai Pudong's statement about SVB's good standing, was made only hours before the takeover by regulators. The Chinese venture asked its clients to remain calm and stressed that it is unaffected by the chaos surrounding the US parent company.

As of the end of June 2022, public filings by Shanghai Pudong reveal that the joint venture had a registered capital of 2 billion yuan ($289 million) with both the Chinese and US parent companies owning an equal stake. The venture's filings also indicated total assets of 21.3 billion yuan and a net loss of 5.5 million yuan for the first six months of 2022.

(With inputs from Bloomberg)