Chinese Pharmaceutical Firms: Six Hong Kong-listed firms say their deposits at SVB are immaterial, Health News, ET HealthWorld
Reuters
March 13, 2023, 16:01 IST
Hong Kong: Six Hong Kong-listed companies, mostly Chinese pharmaceutical firms, disclosed cash deposits at Silicon Valley Bank on Sunday, adding that their exposure to the failed US lender and its impact on operations were immaterial, in an effort to calm investors.
Startup-focussed SVB Financial Group, which did business as Silicon Valley Bank, collapsed on Friday in the largest bank failure since the 2008 financial crisis, roiling global markets and stranding billions of dollars belonging to companies and investors.
Among the six companies that published filings to the stock exchange on Sunday, Brii Biosciences Limited had the highest percentage of cash and bank balances at SVB, at less than 9 per cent. It did not provide a monetary figure for the deposits.
"Notwithstanding the closure of SVB, the existing cash and bank balances of the company continue to be sufficient to meet its working capital, capital expenditures and material cash requirements from known contractual obligations for the next three years," Brii Biosciences said.
Broncus Holding Corporation
said it held $11.8 million at SVB, representing around 6.5 per cent of its total cash. "The company's cash and assets are well-diversified to minimize risk, and it engages sizable financial institutions for commercial banking services which are not currently exposed to liquidity risks," it said in the filing.
CStone Pharmaceuticals
said its accounts held at SVB in excess of the Federal Deposit Insurance Corporation (FDIC)-insured limits are less than $600,000, accounting less than 0.5 per cent of its cash. Noah Holdings Private Wealth and Asset Management Limited has less than $1 million with SVB, less than 0.2 per cent of its total cash.
Monday, March 13, 2023 at 10:31 am