Pudong Bank to establish joint venture bank with US Silicon Valley Bank

On December 18, the company signed the "initiator agreement" with Silicon Valley Bank (a subsidiary of Silicon Valley Banking and financial Group) in China to set up a joint venture bank to focus on the service of technology-based SMEs, the Pudong Bank announced December 21 evening.　　However, the agreement has yet to be approved by China and US regulators.　　Analysts believe that this is the following mobile shares, Pudong Development Bank into the information, High-tech industry, another signal.　　According to public information, the Silicon Valley Bank was founded in 1983 with assets of $5 billion trillion, and through its 27 offices in the United States, 3 international subsidiaries and a wide range of business networks in Asia, Europe, India and Israel, it has provided 2.6 billion of billions of dollars in loans to venture capitalists and start-ups. As a temptation to the Chinese market, in 2008, the Silicon Valley Bank will be targeted first in the guarantee business, investment in Zhejiang Province, the new Li-Bond limited.　　In 2009, with the cooperation of Shanghai Yangpu District, Silicon Valley Bank successfully obtained the stepping stone to further penetrate the Chinese market-set up the Shanghai office, and helped Yangpu the government to manage a number of funds. In the months before the California Governor Arnold Schwarzenegger visited Shanghai, the Silicon Valley Bank and Shanghai Municipal Finance office, Shanghai Yangpu District government had signed a series of framework agreement, aimed at promoting High-tech venture capital.　　However, Silicon Valley bank insiders have said in media interviews that Silicon Valley banks are still unable to carry out enough business in China, subject to financial licence restrictions. "Cooperation with PUFA may supplement the lack of this part of the Silicon Valley Bank."　　The analyst told the Daily Economic news reporter. The announcement also said that if the terms negotiated by the two sides were approved by the relevant regulatory authorities, the Silicon Valley Bank would not invest more than 500 million yuan and hold a stake of no more than 50% per cent of the joint venture bank.