The future of SPD Silicon Valley Bank, the groundbreaking Chinese joint venture of Silicon Valley Bank, hangs in uncertainty nearly two months after the collapse of its parent company.
SPD Silicon Valley Bank, an exceptional player in the Chinese financial sector as a US-China joint venture lender, has been instrumental in nurturing an entrepreneurial lending ecosystem.
For the past decade, it has provided valuable guidance and support to local institutions.
While Silicon Valley Bank managed to offload its loan portfolio to First Citizens Bank and its UK operations to HSBC through distressed sales, no potential buyers have stepped forward to acquire Silicon Valley Bank’s stake in its Chinese counterpart.
Nonetheless, SPD Silicon Valley Bank continues to operate amidst this challenging situation.
“In terms of the foreign stake in the venture bank, we’re communicating with Chinese regulatory authorities and [US regulator] FDIC, and the next step will be to resolve it in accordance with laws and regulations,” said Jade Lu, president of SPD Silicon Valley Bank, in an emailed response to the Financial Times.
“During the process, the normal business operation of SPD Silicon Valley Bank will not be affected,” she added.
