The Shanghai Pudong Development Bank and The Silicon Valley Bank in the US now plan to set up a joint bank in China that will be designed to serve small and medium-size technology companies.
The Shanghai Pudong Development says Silicon Valley Bank plans to invest as much as 500 million yuan, or just over 75 million US dollars in the joint venture, which is still awaiting regulatory approval by Chinese regulators.
SVB Financial, the parent company of Silicon Valley Bank , specializes in providing financing for venture-capital-backed technology companies in the U.S.
In a filing to the U.S. Securities and Exchange Commission, SVB says that if the deal is approved, Silicon Valley Bank "will own up to 50% of the joint venture."
However, analysts point out that Silicon Valley Bank's ownership in the venture is likely to be less than 50% because of China's banking and foreign ownership regulations.
