Mar 14, 2023

Tuesday, 14 Mar 2023 Customers wait in line outside a branch of the Silicon Valley Bank in Wellesley, Massachusetts, U.S., March 13, 2023. REUTERS/Brian Snyder HONG KONG: Over a dozen Hong Kong-listed companies say they have little or no exposure to Silicon Valley Bank, the failed US lender that has roiled investors and markets globally. Startup-focussed SVB Financial Group, which did business as Silicon Valley Bank, collapsed last Friday in the largest bank failure since the 2008 financial crisis. US officials have stepped in to stem the financial fallout and said that all customers will have access to their deposits. Chinese companies are making efforts to reassure clients and investors as the collapse of the US bank could have a negative psychological impact on China’s markets since many tech start-ups, especially those with dollar funding, have opened US accounts at SVB. On Saturday, SVB’s Chinese joint venture with Shanghai Pudong Development Bank said it has a sound corporate structure and an independently operated balance sheet. Firms scrambled through Sunday and yesterday to release statements on the extent of their exposure or to distance themselves from the bank. A China-based drug developer, Beigene Ltd, 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 said it has deposit accounts with the bank with a balance of US$430,000 (RM1.94mil) and that the accounts represent a minimal portion of cash and cash equivalents. Six Hong Kong-listed companies, mostly Chinese pharmaceutical firms, also disclosed cash deposits at Silicon Valley Bank over the weekend. Brii Biosciences Limited 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 said it held US$11.8mil (RM53.3mil) at SVB, representing around 6.5% of its total cash. — Reuters Article type: free