24/07/2024

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Andon Health: Chinese company says it has full access to SVB-parked funds

Andon Health: Chinese company says it has full access to SVB-parked funds


Hong Kong
CNN
 — 

China’s Andon Well being, a maker of healthcare units, claims it has whole obtain to money parked at Silicon Valley Financial institution, following the US govt intervened to backstop all the deposits at the failed loan company.

The Tianjin-based company, which manufactures purchaser well being equipment and supplied Covid exam kits to the United States all through the pandemic, has income deposits at SVB worth 5% of its complete cash and dollars equivalents.

That quantities to roughly 675 million yuan ($98 million), in accordance to calculations primarily based on its most the latest earnings report.

“Our deposits at Silicon Valley Financial institution can be made use of in whole and have not endured any losses,” the corporation said in a Tuesday filing to the Shenzhen Inventory Exchange.

The announcement will come just after the US governing administration took incredible measures on Sunday to avert a opportunity banking disaster pursuing the collapse of SVB. These measures consist of guaranteeing that shoppers of the bank will have obtain to all their funds setting up Monday.

By carrying out that, US regulators aimed to avoid a lot more bank operates and to assistance corporations that deposited huge sums with impacted banking companies to carry on to make payroll and fund their functions

The collapse of SVB, which courted Chinese start out-ups, has brought on common concern in China, where a string of founders and corporations rushed to appease investors by indicating their exposure was insignificant or nonexistent.

So significantly, far more than a dozen of companies have issued statements hoping to pacify traders or clientele, expressing that their publicity to SVB was confined. Most have been biotech firms.

SVB, which worked with virtually fifty percent of all enterprise-backed tech and health care businesses in the United States right before it was taken in excess of by the government, has a Chinese joint undertaking, which was set up in 2012 and focused the country’s tech elite.

The SPD Silicon Valley Financial institution, which was owned 50-50 owned by SVB and community husband or wife Shanghai Pudong Growth Lender, explained Saturday that its functions were “sound.”