SPD Silicon Valley Bank, the first joint venture bank in China that is dedicated to providing financial services for the technology innovation industry, opened in Shanghai yesterday.
The bank, equally owned by Shanghai Pudong Development Bank and Silicon Valley Bank, has an initial registered capital of 1 billion yuan (US$157.9 million).
It's the first lender in China to specialize in financing for technology innovation companies.
The lender said in a statement yesterday that a growing number of technology and innovation companies have become increasingly important in driving China's economic development. However, their unique needs for financial services are under-served at the moment.
"That's why the government is very interested in developing the ability to finance such companies that are usually small in size," said Ken Wilcox, president and chief executive officer of SPD Silicon Valley Bank.
"Other banks are not interested in lending to these small technology companies, because it's too risky."
The lender pledged to provide a full range of focused and flexible financial services to scientific and technological innovation businesses.
"The success of Silicon Valley Bank in the United States may not be possible to replicate in China. But the experience from the past 30 years is applicable here. We believe our successful model of this particular sector can be localized through hard work," Wilcox added.
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