REUTERS - Silicon Valley Bank, the banking unit of SVB Financial Group (SIVB.O), said it has signed a joint venture agreement in China with Shanghai Pudong Development Bank Co, Ltd.
Silicon Valley will make a capital contribution of $75 million to the joint venture and own a 50 percent stake in it, the company said in a regulatory filing.
The joint venture has to meet the approval of the U.S. and Chinese regulatory authorities, SVB said.
SVB had said in October that it was working towards establishing a banking platform focused on technology and life science companies in China.
In October, the company also opened an international subsidiary in Beijing - SVB Business Partners (Beijing) Co Ltd. It also has invested in Chinese companies like Zhejiang Uni-power Guaranty and Zero2IPO Group and other venture capital funds.
The company hosted its first board of directors meeting in Shanghai in November -- the first time it has held its board meeting outside the United States.
China Mobile had bought a 20 percent stake in Shanghai Pudong Development Bank in March for about $5.8 billion to help the mobile operator dominate the country's nascent mobile e-commerce market.
Shares of the Santa Clara, California-based SVB closed at $52.84 on Tuesday on Nasdaq. Their value has risen 16 percent since the company opened its Beijing unit in October.
(Reporting by Rachel Chitra in Bangalore; Editing by Roshni Menon)
Trending On Reuters
Rescuers dug with their bare hands and bodies piled up in Nepal on Sunday after an earthquake devastated the heavily crowded Kathmandu Valley, killing more than 2,200 people, and triggered a deadly avalanche on Mount Everest. Full Article | Pictures
RBI chief Rajan calls for formal financing routes for farmers - report Full Article