# Over a dozen Chinese-based firms say they have minimal exposure to SVB Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2023-03-13 Category: NEWS Category URL: https://financedigest.com/category/news Meta Title: Hong Kong-listed Companies React to Silicon Valley Bank Meta Description: Discover how over a dozen Hong Kong-listed companies are managing their exposure to the failed U.S. lender, and the impact on Chinese tech start-ups. URL: https://financedigest.com/over-a-dozen-chinese-based-firms-say-they-have-minimal-exposure-to-svbhtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2023-03-13t024414z1lynxmpej2c032rtroptp4svb-financial-group-m-a-rbc-1736814339363-compressed.jpg) HONG KONG (Reuters) -Over a dozen Hong Kong-listed companies have stepped forward to say they had little or no exposure to Silicon Valley Bank, the failed U.S. lender which has roiled investors and markets globally. Startup-focussed SVB Financial Group, which did business as Silicon Valley Bank, collapsed on Friday in the largest [bank failure since the 2008 financial crisis](https://www.financedigest.com/how-the-2023-banking-crisis-unfolded.html "How the 2023 banking crisis unfolded"). U.S. officials have [stepped in to stem](https://www.financedigest.com/australia-steps-up-vaccine-push-to-stem-covid-19-outbreak.html "Australia steps up vaccine push to stem COVID-19 outbreak") financial fallout, saying that all customers will have access to their deposits starting on Monday. Chinese companies are making efforts to reassure clients and [investors as the collapse](https://www.financedigest.com/sterling-collapses-as-investors-fly-into-dollars.html "Sterling collapses as investors fly into dollars") of the U.S. [bank could have a negative psychological impact on China’s](https://www.financedigest.com/asia-shares-bank-on-eventual-china-opening-oil-gains.html "Asia shares bank on eventual China opening; oil gains") markets, since many tech start-ups, especially those with dollar funding, have opened U.S. accounts at SVB. On Saturday, [SVB’s Chinese joint venture with Shanghai Pudong Development](https://www.financedigest.com/mobile-games-developer-huuuge-says-has-24-2-million-at-svb.html "Mobile games developer Huuuge says has .2 million at SVB") Bank said it has a sound corporate structure and an independently operated balance sheet. Firms scrambled through Sunday to Monday to release statements on the extent of their [exposure](https://www.financedigest.com/why-financial-services-firms-are-banking-on-behavioural-biometrics-to-beat-fraud.html "Why financial services firms are banking on behavioural biometrics to beat fraud") or to distance themselves from the bank. China-based drug developer Beigene Ltd said it has uninsured cash deposits held at the [bank representing 3.9% of its last reported](https://www.financedigest.com/bank-funding-for-renewables-stagnates-vs-oil-and-gas-report.html "Bank funding for renewables stagnates vs oil and gas – report") total cash and cash equivalents. It also said it did not expect the developments to [impact its operations](https://www.financedigest.com/zurich-insurance-h1-operating-profit-leaps-60-as-covid-impact-wanes.html "Zurich Insurance H1 operating profit leaps 60% as COVID impact wanes"). Mobile advertising platform Mobvista Inc said it has deposit accounts with the [bank](https://www.financedigest.com/new-legislation-makes-switching-bank-accounts-simples.html "New legislation makes switching bank accounts “simples”") with a balance of $430,000 and that the accounts represent a minimal portion of cash and cash equivalents. Six Hong Kong-listed companies, mostly Chinese pharmaceutical firms also over the weekend disclosed cash deposits at [Silicon Valley Bank](https://www.financedigest.com/exclusive-u-s-regulator-seeks-sale-of-silicon-valley-bank-signature-bank-portfolios-sources.html "Exclusive-U.S. regulator seeks sale of Silicon Valley Bank, Signature Bank portfolios-sources"). Brii Biosciences Limited revealed it had the highest percentage of cash and [bank balances at SVB](https://www.financedigest.com/swiss-regulator-monitoring-banks-and-insurers-after-svb-collapse.html "Swiss regulator monitoring banks and insurers after SVB collapse"), at less than 9%. It did not provide a monetary figure for the deposits. Notwithstanding the closure of SVB, the existing cash and [bank balances of the company continue to be sufficient to meet its working](https://www.financedigest.com/boes-bailey-says-bank-reforms-worked-but-questions-about-liquidity-buffers.html "BoE’s Bailey says bank reforms worked but questions about liquidity buffers") capital, capital expenditures and material cash requirements from known contractual obligations for the next three years,” Brii Biosciences said. Broncus Holding Corporation said it held $11.8 million at SVB, representing around 6.5% of its total cash. CStone Pharmaceuticals, Noah Holdings Private [Wealth and Asset Management](https://www.financedigest.com/wealth-management-consultant.html "Wealth management consultant") Limited and Jacobio Pharmaceuticals Group Co said in different statements they had less than 0.2-0.5% of their total cash at SVB. CANbridge Pharmaceuticals Inc said the amount of cash deposited with SVB is “immaterial and is generally within the amount guaranteed by the FDIC accordingly”, without giving any figures. Ascentage Pharma Group International said in a filing on Sunday is had not had any business [dealings with SVB](https://www.financedigest.com/u-s-mid-tier-lenders-shares-rise-in-frankfurt-after-svb-deal.html "U.S. mid-tier lenders shares rise in Frankfurt after SVB deal"), while tycoon Pan Shiyi, co-founder and former chairman of commercial property developer SOHO China, said on his Weibo account that he had never opened an account or deposited at the bank. (Reporting by Clare Jim and Bernard Orr; Editing by Frank Jack Daniel and Lincoln Feast) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---