Shanghai Pudong Development Bank Takes Full Control of Joint Venture after SVB Collapse

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SPD Silicon Valley Bank was founded in August 2012 as the first tech-focused bank in China.

Silicon Valley Bank’s joint venture in China has gained regulatory approval to reduce its registered capital by half, buy back its equity from its bankrupt partner, and rename itself to Shanghai Innovation Bank Co. Ltd.

Shanghai Pudong Development Bank now owns 100% of Shanghai Innovation Bank, and its registered capital is reduced from 2 billion yuan ($281 million) to 1 billion yuan, according to a statement by Shanghai bureau of the National Financial Regulatory Administration.

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Silicon Valley Bank's China joint venture renamed to Shanghai Innovation Bank Co. Ltd., with registered capital halved to 1 billion yuan.
Shanghai Pudong Development Bank now fully owns the venture, which was unaffected by SVB's collapse in the U.S.
SPD Silicon Valley Bank reported 2023 revenue of 409 million yuan and net profit of 67.7 million yuan, maintaining a core tier 1 capital adequacy ratio of 15.09%.

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Who’s Who

Silicon Valley Bank: Silicon Valley Bank (SVB) was a major U.S. lender that failed in March 2023 due to significant losses in bond investments and a cash exodus from tech startups. It initially held a 50% stake in SPD Silicon Valley Bank, a tech-focused joint venture in China, which later rebranded to Shanghai Innovation Bank Co. Ltd. after buying back SVB's equity.

Shanghai Innovation Bank Co. Ltd.: Shanghai Innovation Bank Co. Ltd., formerly SPD Silicon Valley Bank, is a tech-focused bank in China, now fully owned by Shanghai Pudong Development Bank. It received regulatory approval to halve its registered capital to 1 billion yuan and buy back equity from its bankrupt partner, SVB. Despite the name change and capital reduction, its business operations and core capital metrics remain unaffected.

Shanghai Pudong Development Bank: Shanghai Pudong Development Bank now wholly owns Shanghai Innovation Bank, formerly SPD Silicon Valley Bank. Initially a 50% stakeholder in the tech-focused joint venture, it gained full ownership following the approved capital reduction and equity buyback after SVB's collapse. The bank, showcasing stability amidst the turmoil, reported significant revenues and maintained a strong core tier 1 capital adequacy ratio in its 2023 annual report.

SPD Silicon Valley Bank: SPD Silicon Valley Bank, founded in August 2012 as China's first tech-focused bank, was a joint venture with Shanghai Pudong Development Bank (SPD) and Silicon Valley Bank (SVB) each holding a 50% stake. Following SVB's collapse in March 2023, SPD now owns 100%, rebranding to Shanghai Innovation Bank Co. Ltd., reducing registered capital from 2 billion to 1 billion yuan. The bank reported 2023 revenue of 409 million yuan and a net profit of 67.7 million yuan.

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