Shanghai Pudong Development Bank (SH.60000) and Silicon Valley Bank will operate their joint venture bank in China, the first bank in China to focus on technology companies, according to the China Bank Regulatory Commission (CBRC).
The joint venture bank, in which both companies have a 50 percent stake, was established to provide financial support to small-and-medium sized technology companies in China. It’s the first bank focusing on technology companies in China. The investment capital is 1 billion yuan ($158 million) according to China Daily Report.
The CBRC approved the establishment of the bank in Oct 2011, but operations will not start in July at the earliest.
The bank will not launch retail businesses in the first three years after the formal launch and is projected to be a regional bank, according to the shanghai-based Oriental Morning Post.
Separately, domestic banks are also exploring their presence overseas. According of official Financial News report, a subsidiary operated by Xinhua news agency, that Bank of China (SH.601988), the country’s biggest foreign exchange lender, and Bank of Communications (SH.601328), China’s fifth-largest bank, have got Taiwanese regulatory approvals to open branches in Taipei.