has created a sense of panic within China’s tech start-up and venture capital sector, as the lender served as a bridge between US capital and Chinese tech entrepreneurs.
“The collapse of SVB has lowered the trust of Chinese companies in foreign banks, so they will be more cautious when considering US dollar funds,” said Fu Jian, director of Henan Zejin Law Firm. The denial came after talks circulated online that Wang Xing, co-founder and chief executive of Meituan, had showcased the company’s US$60 million deposit at SVB at a media briefing years ago, when the company secured a B-round financing in 2011.
“SVB’s customer base is mainly scientific and technological innovation enterprises, which are very sensitive to liquidity and technology cycles,” said China International Capital Corporation, the state-owned investment bank, in a report published on Sunday. It added that the impact should not be “underestimated” since other banks have “similar risk exposures” as theMeanwhile, some analysts said that the impact could be limited in China, given the scope of Chinese tech start-ups.
and fed/treasury's bailout helps china's tech start-ups :D
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