Six Hong Kong-listed firms say their deposits at SVB are immaterial

CStone Pharmaceuticals

12/03/2023 13:45

HONG KONG, March 12 (Reuters) - Six Hong Kong-listed
companies, mostly Chinese pharmaceutical firms, disclosed cash
deposits at Silicon Valley Bank on Sunday, adding that their
exposure to the failed U.S. lender and its impact on operations
were immaterial, in an effort to calm investors.
    Startup-focussed SVB Financial Group  SIVB.O , which did
business as Silicon Valley Bank, collapsed on Friday in the
largest bank failure since the 2008 financial crisis, roiling
global markets and stranding billions of dollars belonging to
companies and investors.
    Among the six companies that published filings to the stock
exchange on Sunday, Brii Biosciences Limited  2137.HK  had the
highest percentage of cash and bank balances at SVB, 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 capital, capital expenditures and material cash
requirements from known contractual obligations for the next
three years," Brii Biosciences said.
    Broncus Holding Corporation  2216.HK  said it held $11.8
million at SVB, representing around 6.5% of its total cash.
    "The company’s cash and assets are well-diversified to
minimize risk, and it engages sizable financial institutions for
commercial banking services which are not currently exposed to
liquidity risks," it said in the filing.    
    CStone Pharmaceuticals  2616.HK  said its accounts held at
SVB in excess of the Federal Deposit Insurance Corporation
(FDIC)-insured limits are less than $600,000, accounting less
than 0.5% of its cash.     
    Noah Holdings Private Wealth and Asset Management Limited
 6686.HK  has less than $1 million with SVB, less than 0.2% of
its total cash.
    Jacobio Pharmaceuticals Group Co  1167.HK  had completed the
transfer procedure of the entire balance - less than $400,000,
which was 0.2% of its total cash - out of SVB in the evening of
March 9, the company said.
    CANbridge Pharmaceuticals Inc  1228.HK  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.
    Chinese companies are making efforts to pacify local clients
as the collapse of the U.S. bank could have a negative
psychological impact on China's markets, since many tech
start-ups, especially those with dollar funding, have opened
U.S. accounts at SVB.
    And that included firms that have no ties with SVB.
    Ascentage Pharma Group International  6855.HK  said in a
filing on Sunday is had not had any business dealings with SVB,
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.
    On Saturday, SVB's Chinese joint venture with Shanghai
Pudong Development Bank  600000.SS  also said that it has a
sound corporate structure and an independently operated balance
sheet, in an apparent effort to pacify local clients.

 (Reporting by Clare Jim; Editing by Frank Jack Daniel)
 ((frank.daniel@thomsonreuters.com; +52 55 5282 7137;))