Over a dozen Chinese-based firms say they have minimal exposure to SVB (updated)

Mobvista

13/03/2023 01:22

(Adds details of more firms)
       HONG KONG, March 13 (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  SIVB.O , which did
business as Silicon Valley Bank, collapsed on Friday in the
largest bank failure since the 2008 financial crisis. U.S.
officials have stepped in to stem 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 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.
   On Saturday, SVB's Chinese joint venture with Shanghai Pudong
Development Bank  600000.SS  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 or to distance
themselves from the bank. 
    China-based drug developer Beigene Ltd  6160.HK  said it has
uninsured cash deposits held at the bank representing 3.9% of
its last reported total cash and cash equivalents. It also said
it did not expect the developments to impact its operations.
    Mobile advertising platform Mobvista Inc  1860.HK  said it
has deposit accounts with the bank 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. 
    Brii Biosciences Limited  2137.HK  revealed it 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. 
    CStone Pharmaceuticals  2616.HK , Noah Holdings Private
Wealth and Asset Management Limited  6686.HK  and Jacobio
Pharmaceuticals Group Co  1167.HK  said in different statements
they had less than 0.2-0.5% of their total cash at SVB. 
    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.
    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.

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