[CNN of all places] In China, at least a dozen firms have issued statements since SVB collapsed trying to pacify investors or clients, saying that their exposure to the lender was limited. Most were biotech companies.Bailout urgency fully explained.
BeiGene, one of China’s largest cancer-focused drug companies, said Monday it had more than $175 million uninsured cash deposits at SVB, which represents approximately 3.9% of its cash, cash equivalents and short-term investments.
"The company does not expect the recent developments with SVB to significantly impact its operations," it said.
People line up outside of the shuttered Silicon Valley Bank (SVB) headquarters on March 10, 2023 in Santa Clara, California. Silicon Valley Bank was shut down on Friday morning by California regulators and was put in control of the U.S. Federal Deposit Insurance Corporation. Prior to being shut down by regulators, shares of SVB were halted Friday morning after falling more than 60% in premarket trading following a 60% declined on Thursday when the bank sold off a portfolio of US Treasuries and $1.75 billion in shares to cover declining customer deposits.
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Zai Lab, a pharmaceutical firm, announced that its cash deposits at SVB were "immaterial" at about $23 million.
The closure of SVB "will not have an impact" on the company’s ability to meet its operating expenses and capital expenditure requirements, including payroll, it said.
Other companies that publicly assured investors included Andon Health, Sirnaomics, Everest Medicines, Broncus Medical, Jacobio Pharmaceuticals, Brii Biosciences, CStone Pharmaceuticals, Genor Biopharma and CANbridge Pharmaceuticals.
Mobile ad tech firm Mobvista and wealth management firm Noah Holdings said their cash holdings at SVB were "minimal" or "immaterial."
Popular selfie app Meitu said it hadn’t held any bank accounts at SVB since 2020. It issued a statement "to avoid any potential public misunderstanding."
Ascletis Pharma, MicroPort NeuroTech, Antengene Corp, and Suzhou Basecare Medical Corporation also denied they had any deposits or business dealings with SVB.
Pan Shiyi, co-founder and former chairman of Soho China, a major Beijing-based property developer, denied he had any money at SVB after reports went viral on social media that he had lost billions of yuan.
"We never opened an account with Silicon Valley Bank, nor placed a deposit," he said late Sunday on his Weibo account.