SSVB un­veils RMB busi­ness

China Daily (Canada) - - SHANGHAI - By WANG YING in Shang­hai

wang_y­ing@chi­nadaily.com.cn

The SPD Sil­i­con Val­ley Bank (SSVB) on Sept 9 in­tro­duced RMB busi­ness to its Chi­nese cus­tomers, and the move is ex­pected to ben­e­fit more lo­cal tech and in­no­va­tion com­pa­nies as well as their in­vestors. The first batch of 20 com­pa­nies signed con­tracts for the new ser­vice on the very same day.

SSVB, a joint ven­ture be­tween Shang­hai Pudong De­vel­op­ment Bank Co Ltd (SPD) and US-based Sil­i­con Val­ley Bank (SVB), was founded in 2012 and is China’s first com­mer­cial bank ded­i­cated to such busi­nesses.

David Jones, pres­i­dent of SSVB, said that the growth mo­men­tum of tech­nol­ogy and in­no­va­tion com­pa­nies in Shang­hai is cre­at­ing sig­nifi op­por­tu­ni­ties for the bank and its RMB ca­pa­bil­ity.

“Our RMB ca­pa­bil­ity will bring tai­lor-made fi­nan­cial so­lu­tions to com­pa­nies of all stages and will help fa­cil­i­tate their global as­pi­ra­tions,” Jones added.

Ac­cord­ing to Greg Becker, pres­i­dent and chief ex­ec­u­tive of­fi­cer of SVB, be­ing able to op­er­ate in RMB en­ables SSVB to sup­port their clients’ fi­nan­cial needs on­shore and off­shore. The Shang­hai-head­quar­tered bank is cur­rently able to of­fer com­mer­cial bank ser­vices for on­shore ac­counts, de­posits and loans in for­eign and lo­cal cur­rency, for­eign ex­change and online bank­ing.

Wu Xin, pres­i­dent of TV Min­ing, said that the big­gest dif­fer­ence be­tween SSVB and a tra­di­tional bank is that the lat­ter is fo­cused on as­sets and mort­gages while SSVB takes into ac­count in­no­va­tion qual­ity and in­dus­trial in­sights.

Tu Guang­shao, deputy mayor of Shang­hai who at­tended the in­au­gu­ra­tion cer­e­mony of the bank, said that the city can learn from SVB’s ex­pe­ri­ences in the US as it seeks to be­come a global tech­no­log­i­cal in­no­va­tion cen­ter. The mu­nic­i­pal gov­ern­ment of Shang­hai ap­proved a frame­work in May for trans­form­ing the city into a tech­no­log­i­cal in­no­va­tion cen­ter.

More busi­ness op­por­tu­ni­ties are ex­pected to emerge fol­low­ing the launch of this RMB ser­vice.

“In the next steps, Shang­hai Pudong De­vel­op­ment Bank will con­tinue to sup­port SPD Sil­i­con Val­ley Bank’s growth and the two par­ties can team up in ar­eas like RMB credit busi­ness, cross-bor­der RMB busi­ness, funds cus­tody, as­sets man­age­ment, fi­nan­cial mar­ket, in­ter­play of eq­uity and debt. To­gether we will ex­plore in­no­va­tive fi­nan­cial mod­els of serv­ing China’s tech and in­no­va­tion space,” said Ji Xiao­hui, chair­man of SPD.

China’s tech­nol­ogy in­no­va­tion in­dus­try has been rapidly ex­pand­ing in re­cent years, and de­mand for fi­nanc­ing by emerg­ing tech­no­log­i­cal en­ter­prises has been ris­ing as a re­sult. In the first quar­ter this year, nearly $3 bil­lion was gen­er­ated through ven­ture cap­i­tal by Chi­nese tech­no­log­i­cal in­no­va­tion en­ter­prises, a jump of 69 per­cent year-on-year, the Se­cu­ri­ties Times re­ported.

Over the last three years, SSVB has been work­ing on build­ing an in­no­va­tion ecosys­tem in China through SVB’s global net­work and SPD’s ex­per­tise in the lo­cal mar­ket. Apart from its bank­ing ser­vices, SSVB is also build­ing in­no­va­tion part­ner­ships with re­search in­sti­tutes, in­no­va­tion in­cu­ba­tors, in­vestors, as well as tech and in­no­va­tion com­pa­nies.

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